An area of strength for the firm is its relatively high portfolio manager retention over the past five years, as long-term stability tends to support positive results. 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. Sound Mind fails to showcase longevity across its product shelf, as evidenced by its three-year success ratio. This means that, over this time period, only 0% 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.
Sound Mind has some investor-friendly attributes, but other attributes warrant caution, leading to an Average Parent Pillar rating.