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, Matisse Funds 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 seven years among the longest-tenured managers at Matisse Funds, 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 stable portfolio management over the past five years, indicated by a higher-than-average retention ratio, positively impacts its rating.
Category
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