Longest-tenured managers have four years of average asset-weighted tenure, which is slim compared with peer firms. In isolation, this does n't bode well as the current managers have limited experience running strategies. 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 second 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. Seven Canyons fails to showcase longevity across its product shelf, as evidenced by its five-year risk-adjusted success ratio. This means that, over this time period, only 0% of its roster has been able to survive and beat its respective category median on a risk-adjusted basis. A low success ratio indicates poor performance and raises questions about a firm’s discipline around investment strategy and product development.
Category
A category is a way to group investments based on similar risk, return, and behavior profiles.