Defiance fails to live up to one of the hallmarks of stewardship, manager investment, to help align portfolio manager and shareholder interests. None of the firm’s assets are covered by an invested manager. Longest-tenured managers’ average asset-weighted tenure within the firm is slim, four years, compared with peer firms. This contributes negatively to the rating, as the current managers have limited experience running strategies at the firm. Favorable fees at Defiance are a quintessential quality found on many of its open-end and exchange-traded products. On average, fund fees at the firm are in the cheapest quintile of peers.
Why the Mutual Fund Trading Scandal Still Matters Today
Two decades later, we share lessons learned from this regulatory imbroglio.
United States