The combination of a middling Process Pillar rating and a Below Average People Pillar rating limit  Blueprint Chesapeake Multi-Asst Trnd ETF to a Morningstar Medalist Rating of Neutral.  Fees are a weakness here. The strategy's lofty fees are a high hurdle to clear, as it is priced within the second-costliest quintile among peers.  

 The longest-tenured manager has a wealth of experience, but due to other weaknesses, the strategy earns a Below Average People Pillar. The strategy earns an Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a considerable underweight position in the Europe-Developed region and has a considerable overweight in the basic materials sector compared with category peers. The strategy's parent firm has some investor-friendly attributes, like low portfolio manager turnover, but it is held back by relatively short-tenured portfolio managers. As a result, the firm gets an Average Parent Pillar rating.

Analyst Rating

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Morningstar's style-agnostic evaluation of this fund's process seeks to understand whether the strategy has a performance objective and sensible, clearly defined, repeatable execution. Blueprint Chesapeake Multi-Asst Trnd ETF earns an Average Process Pillar rating. The leading factor in the rating is the firm's five-year retention rate of 100% over the period. The size of the portfolio management team also contributes to the process. With four portfolio managers, the fund is reasonably well-resourced. Lastly, the process is limited by high costs across its parent firm's funds, whose fees rank in their category's most-expensive quintile on average. While this fund's costs are most relevant to investors, the pattern at the broader firm suggests it could do more to keep expenses down.

This strategy maintains a fixed-income weighting that hews closely to the typical Global Allocation peer but holds less assets in equities, with a 24% to 17% fixed-income to equity composition. Its equity sleeve is consistently tilted toward both smaller market-cap and growth-oriented stocks as opposed to the category average. The strategy has three region or sector biases compared to category peers. The most meaningful is its consistent underweight in the Developed Europe region. It also maintains an overweight position in the basic materials sector. And finally, in the fund's most recent portfolio, less assets were allocated to developed markets regions. Although, this bias has not existed over time. 

 The portfolio is overweight in industrials and basic materials relative to the category average by 25.8 and 16.0 percentage points, respectively. The sectors with low exposure compared to category peers are financial services and technology, underweight the average by 9.7 and 8.6 percentage points of assets, respectively. The portfolio is overweight in North America by 28.9 percentage points compared with the category average, and Emerging Europe's allocation is similar to its peers. The regions with low exposure compared to their category peers are Developed Europe and Japan, underweight the average by 11.8 percentage points and 7.2 percentage points, respectively.

Average

Process

Blueprint Chesapeake Multi-Asst Trnd ETF earns a Below Average People Pillar rating. The team is strengthened by the firm's five-year retention rate of 100%. However, the rating is weakened by the combined average five-year excess return of each manager, which suggests that the funds they manage have underperformed their respective category average. The number of months that the management team has been running this vehicle together also holds the rating back. Since this is a newly incepted product, more time is needed to monitor the team's capability at executing the strategy.


Jon Robinson, the longest-tenured manager on the strategy, boasts 17 years of listed portfolio management experience. The average Morningstar Rating of the strategies they currently manage is 3.0 stars, demonstrating average risk-adjusted performance. The team boasts an experienced corps of listed portfolio managers, with three others supporting Jon Robinson. Together, they average 12 years of listed portfolio management experience.

Below Average

People

Blueprint Chesapeake's short track record of eight months has not stopped it from demonstrating that it can be trusted as much as the next asset manager. As a result, it earns an Average Parent Pillar rating. The firm currently manages one vehicle, with a total of $74.8 million under management across a bench of four portfolio managers. Blueprint Chesapeake has done a commendable job of recruiting experienced managers to join the firm, as evidenced by the average industry experience of over 12 years. The firm's earliest portfolio manager hire, Jon Robinson, has 17 years of industry experience. 
 
   

 As Blueprint Chesapeake builds and continues to develop a track record, its rating will be adjusted accordingly.

Parent

Blueprint Chesapeake Multi-Asset Trend ETF

TFPN seeks capital growth and preservation through a dynamic allocation between derivatives linked to various asset classes and long-short equity positions. The actively managed fund utilizes a trend-following strategy called the Chesapeake Program.

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Warren Buffett once famously said: “Someone is sitting in the shade today because someone planted a tree a long time ago.” Milestones in life and in investing have a way of getting us to stop and think about decisions made that brought us here.

ETF Lessons for a New Era

Blueprint Fund Management and Chesapeake Capital Corp. have partnered to subadvise the Blueprint Chesapeake Multi-Asset Trend ETF (NYSE Arca: TFPN). TFPN seeks capital appreciation by trend following futures and individual securities.

News for Blueprint Chesapeake Multi-Asset Trend ETF ETF (TFPN)