Longest-tenured managers have five 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 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's risk-adjusted performance compares similarly to competitors. Across all open-end and exchange-traded funds, the firm's average overall Morningstar Rating is 3.7 stars, which is about standard.
Xsquare Capital fails to meet industry-standard stewardship qualities, culminating in a Below Average Parent Pillar rating.
United States