Fees on the firm's open-end and exchange-traded funds are a weakness, contributing negatively to the rating and creating a larger performance hurdle on funds. On average, Archer charges fees on its funds that are in the second most-expensive quintile of similarly distributed funds. With the current market environment of fee compression, this is cause for concern, as investors may flock over time to alternate asset managers to get a better deal. The Archer portfolio management team has lacked continuity over the past five years, denoted by elevated levels of turnover, which bears watching. Experienced longest-tenured management is a core advantage that Archer has over others. Average asset-weighted tenure across management is 13 years, building confidence that the group has been put through its paces.
Archer has a ways to go to become an industry-standard steward, resulting in a Below Average Parent Pillar rating.