The firm’s lineup has demonstrated industry-average durability. Its five-year risk-adjusted success ratio is 57%, meaning that 57% of products have both survived and beaten their respective category median on a risk-adjusted basis. A firm's success ratio indicates relative performance and provides insight into a firm’s discipline around investment strategy and product development. Sit's risk-adjusted performance compares similarly to competitors. Across its open-end and exchange-traded funds, the firm’s average five-year Morningstar Rating is 3.4 stars, which is about standard. Fees on open-end and exchange-traded funds are a weakness of the firm, contributing negatively to the rating. On average, expenses on its funds are within the second most-expensive quintile compared with category peers. 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.
Procter & Gamble Earnings: Muted Sales Growth Doesn’t Reflect a Stained Brand Mix
Though we don’t view the stock as a bargain, we think investors should keep it on their radar.