Dunham

Despite the negative rating, an area of strength of the firm is manager investment. Over 13% of the firm's assets are covered by invested managers, in an effort to align portfolio manager and shareholder interests. 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 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. The longest-tenured managers’ average asset-weighted tenure within the firm is 13 years, bringing a wealth of knowledge through multiple market cycles to the table and contributing positively to the rating.