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, Dearborn Partners 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. The firm's risk-adjusted performance is poor. Across all open-end and exchange-traded products, the firm’s average five-year Morningstar Rating is 2.0 stars. Dearborn Partners has faced above-average manager turnover in the past five years. This is a concern, as long-term stability tends to support positive results.
Category
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