Despite the negative rating, an area of strength of the firm is manager investment. Over 30% of the firm's assets are covered by invested managers, in an effort to align portfolio manager and shareholder interests. 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. Summit Global fails to showcase longevity across its product shelf, as evidenced by its three-year success ratio. This means that, over this time period, only 29% of its roster has been able to survive and beat its respective category median. A low success ratio indicates poor performance and raises questions about a firm’s discipline around investment strategy and product development.
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