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, Liberty Street charges fees on its funds that are in the 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. With an average asset-weighted tenure of six years among the longest-tenured managers at Liberty Street, 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. The firm's lineup has been durable. It has had a three-year risk-adjusted success ratio of 83%, meaning that of the strategies with a three-year track record, 83% have survived and beaten their respective category median on a risk-adjusted basis.
Markets Brief: What Fewer Rate Cuts Could Mean for Stock Valuations
Insights into key market performance and economic trends from Dan Kemp, Morningstar’s global chief research and investment officer.