Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:A Little More on Family Matters Not Rated 0.0 Email Routing List Email & Route  Print Print
Wednesday, September 26, 2012

A Little More on Family Matters

News summary by MFWire's editors

Children really do take after their progenitors, is the point Morningstar reiterates in a Fund Spy piece from last night. Mutual fund analyst Kailin Liu follows up on Morningstar's initial introduction of the Parent category last week, this time providing data to prove that the Parent ratings work. [Read MFWire's coverage here.]

Start with fees. "Lower fees generally increase investors' chances of success," Liu writes, where lower-cost funds consistently outlive and outperform higher-cost funds. To wit, all firms that receive Parent ratings and with Positive ratings have a Firm Average Fee Level of 49. Meanwhile, Firms that receive Neutral or Negative ratings have FAFLs of 53 and 65, respectively.

Analysts also favor long-tenured management teams and manager retention — where tenure measures manager turnover on the fund level, and retention measures manager turnover at the firm level. Positive-rated parents companies tend to boast longer average firm tenure and manager retention than Negative or Neutral-rated firms.

Finally, Positive Parent companies invest considerably more in funds they ran than Neutral or Negative companies.

And that's why the Parent category matters.  

Edited by: HFD


Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2024: Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use