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, Emerald 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. Experienced longest-tenured management is a core advantage that Emerald has over peer firms. With 21 years of average tenure across the group, it is clear that they've been put through their paces. With an average three-year Morningstar Rating of 2.0 stars, the risk-adjusted performance of Emerald's open-end and exchange-traded funds falls short of competitors.
Emerald lags peer asset managers in a number of stewardship qualities, resulting in a Below Average Parent Pillar rating.