The firm's lasting product shelf is its strength. Its five-year success ratio of 89% means that 89% 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. Arrow has brought continuity to its product shelf, with low portfolio management turnover compared with peer firms over the past five years. Fees on open-end and exchange-traded funds are a weakness of the firm, contributing negatively to the rating. On average, expenses on its funds are within the second most-expensive quintile compared with category peers. 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.
Carl Vine: Japan Holds the ‘Most Fascinating Little Pocket of the Global Equity Market’
A longtime Asian equities investor talks structural change, a new shareholder focus, and opportunity in Japan (and China).