AXS's longest-tenured managers do not have the same experience as teams at other firms. Specifically, average asset-weighted tenure within the firm is only three years, building concern in the group's ability to manage capital through a full market cycle effectively. 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.
In an increasingly competitive industry, AXS falls behind on a number of key metrics, resulting in a Low Parent Pillar rating.