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, Castle Investment Management charges fees on its funds that are in the 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 Castle Investment Management open-end and exchange-traded funds fall short of competitors, with an average overall Morningstar Rating of 1.7 stars. Castle Investment Management has presented a reliable and stable portfolio management culture over the past five years, as evidenced by lower-than-average turnover, strengthening the assessment of the firm's stewardship.
Castle Investment Management lags peer asset managers in a number of stewardship qualities, resulting in a Below Average Parent Pillar rating.