SonicShares's longest-tenured managers do not have the same experience as teams at other firms. Specifically, average asset-weighted tenure within the firm is only three years, building concern in the group's ability to manage capital through a full market cycle effectively. 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. The firm has accumulated a strong risk-adjusted track record across its open-end and exchange-traded strategies, with an average overall Morningstar Rating of 5.0 stars.
SonicShares has a ways to go to become an industry-standard steward, resulting in a Below Average Parent Pillar rating.
United States