Fisher Investments receives an Above Average Parent rating.
The Parent Pillar assessment is based on a structured evaluation of key factors that influence a firm’s ability to support strong investment outcomes. This assessment integrates quantitative measures of investment cost, risk-adjusted performance, manager retention, and fund obsolescence.
Cost
A firm’s cost profile is assessed by analyzing the average monthly fee rank of its funds relative to their Morningstar category peers. This metric provides insight into the firm’s approach to pricing its investment solutions and highlights the potential implications for investor outcomes. The firm’s cost profile is broadly in line with industry averages, placing it in the midcost segment. Given its current positioning, the firm maintains a neutral cost profile.
Investment Success
The firm’s record of supporting successful funds is evaluated using the Risk-Adjusted Success Ratio across the trailing three-, five-, and 10-year periods, where available. This measure captures the proportion of a firm’s funds that have both survived and outperformed their category median on a risk-adjusted basis. Higher success ratios reflect stronger survivorship and competitive performance, while weaker success ratios suggest elevated fund obsolescence and less consistent results. The firm’s success ratios rank within the upper tier over three years; within the midrange among peers over five years; and within the upper tier over 10 years.
Manager Tenure & Retention
Average longest manager tenure and the five-year manager retention rate are used as indicators of how effectively a firm retains investment talent and maintains portfolio-management team stability. Longer tenures and higher retention generally suggest stronger continuity and better succession planning, while shorter tenures or lower retention can point to elevated turnover. Firms positioned in the upper segment of the peer distribution receive a positive adjustment, those in the lower segment receive a negative adjustment, and midrange firms receive no adjustment. The firm’s average longest manager tenure falls within the longer-tenure segment of the peer distribution, so a positive adjustment is warranted. The firm’s average annual retention rate over the past five years is positioned in the upper range of the peer distribution, so a positive adjustment is warranted.
Product Management & Fund Obsolescence
A firm’s average annual obsolete rate over the past five years, which measures the proportion of funds merged or liquidated each year and averaged across the period, provides an indication of the rigor behind a firm’s approach to product development. It also serves as a supporting factor in the evaluation of the Parent Pillar. Firms should introduce funds that have enduring investment merit, that can be managed well by the firm, and that are attractive to investors over the long term. When a firm’s obsolete rate is in the high range, a downward adjustment is applied to its Parent Pillar score; when the obsolete rate is in the low range, an upward adjustment occurs. The firm’s average annual obsolete rate over the past five years lands in the lower range, so a positive adjustment is warranted.
