Fees on the firm's open-end and exchange-traded funds are a weakness, contributing negatively to the rating and creating a larger performance hurdle on funds. On average, Tactical Fund charges fees on its funds that are in the highest quintile of similarly distributed funds. With the current market environment of fee compression, this is cause for concern, as investors may flock over time to alternate asset managers to get a better deal. A cause for concern at Tactical Fund is its relatively inexperienced longest-tenured management. In particular, average asset-weighted tenure at the firm is only four years, a negative contributor to the rating. The firm's lineup has had encouraging initial results. Its three-year risk-adjusted success ratio is 67%, meaning that of the funds with a three-year track record, 67% have survived and beaten their respective category median on a risk-adjusted basis.
Have Tactical Asset Allocation Funds Earned Their Keep?
At long last, the opportunity for tactical funds has knocked.