Despite the negative rating, an area of strength of the firm is manager investment. Over 33% of the firm's assets are covered by invested managers, in an effort to align portfolio manager and shareholder interests. Open-end and exchange-traded fund fees are a weakness at the firm, contributing negatively to the rating. On average, the firm charges fees on its funds that are in the second most-expensive quintile of category peers. With the current market environment of fee compression, this is cause for concern, as investors may flock to alternate asset managers over time to get a better deal. On average, Summit Global's longest-tenured portfolio managers have accrued 12 years of tenure. This level of manager experience should give investors confidence in the group's ability to handle differing market conditions.
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