Catalyst

In an increasingly competitive industry, Catalyst falls behind on a number of key metrics, resulting in a Low Parent Pillar rating. 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, Catalyst charges fees on its funds that are in the highest 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. With an average asset-weighted tenure of seven years among the longest-tenured managers at Catalyst, the firm is on par with peers. Seasoned teams tend to have more experience to draw upon should they need to weather turbulent market conditions. Looking at the product lineup, Catalyst strategies have not lasted with other top-tier asset managers, with its three-year risk-adjusted success ratio at 50%, meaning that only 50% of its products have survived and beaten their respective category median on a risk-adjusted basis.