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. 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 4.3 stars.
In an increasingly competitive industry, VELA Funds falls behind on a number of key metrics, resulting in a Below Average Parent Pillar rating.
United States