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, BTS 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. In terms of risk-adjusted performance, the BTS open-end and exchange-traded funds fall short of competitors, with an average five-year Morningstar Rating of 1.4 stars. The firm's stable portfolio management over the past five years, indicated by a higher-than-average retention ratio, positively impacts its rating.
BTS has a ways to go to become an industry-standard steward, resulting in a Below Average Parent Pillar rating.