There have yet to be signs suggesting that Formidable is a topnotch steward. As a result, it is assigned a Below Average Parent rating until there's contrary evidence. Formidable currently oversees three vehicles, with a total of$ 55.1 million under management and a roster of four fund managers.
High costs on open-end and exchange-traded funds at Formidable represent a stiff headwind to performance. The average net expense ratio of its funds falls within the second-costliest quintile compared with others.
To upgrade the firm's rating, Formidable will be expected to build a consistent track record of positive investor experience.