The firm's lasting product shelf is its strength. Its 10-year success ratio of 80% means that 80% of its strategies have both survived and beaten their respective category median. A high success ratio indicates good performance and provides insight into a firm’s discipline around investment strategy and product development. Advisors Preferred's risk-adjusted performance compares similarly to competitors. Across its open-end and exchange-traded funds, the firm’s average 10-year Morningstar Rating is 3.6 stars, which is about standard. Lofty fees for the firm's open-end and exchange-traded funds are a weakness, contributing negatively to Advisors Preferred's rating and creating a larger performance hurdle. The firm's fund fees, on average, fall within the highest quintile of similarly distributed strategies.
In a competitive industry, Advisors Preferred does n't differentiate itself enough, leading to an Average Parent Pillar rating.