Australia and NZ at bottom of class
Australia could only manage a ‘C’ and New Zealand a ‘D minus’ in a Morningstar study measuring best practices in funds management across 16 countries.
The best-rated country was the US with an ‘A’ followed by China with a ‘B plus’, while the United Kingdom scored a ‘C plus’ and New Zealand trailed the field with a D.
Commenting on the results, Morningstar’s head of adviser and research, Anthony Serhan, said the company’s researchers had scored countries in six categories — investor protection, prospectuses and investors’ reports, transparency in sales practices and the media, fees and expenses, taxation and distribution practices.
He said the survey had represented a big task and emphasised that rather than focusing on the grades, the important issue was identifying global best practice.
The US had received an A in the areas of prospectuses and investors’ reports and fees and expenses, while Australia had received a C and, while ranking relatively poorly, had performed well with respect to distribution and choice and transparency in sales and media.
The research showed that transparency in prospectuses and reports had been the main areas where Australia did not stack up, and it was noted that Australia and New Zealand were the only countries in the study that did not require full portfolio holdings disclosure on a regular basis.
It said New Zealand scored worst because of low grades for prospectuses and investors’ reports and taxation.
AUTHOR
Mike Taylor
Recommended for you
Compared to four years ago when the divide between boutique and large licensees were largely equal, adviser movements have seen this trend shift in light of new licensees commencing.
As ongoing market uncertainty sees advisers look beyond traditional equity exposure, Fidante has found adviser interest in small caps and emerging markets for portfolio returns has almost doubled since April.
CoreData has shared the top areas of demand for cryptocurrency advice but finds investors are seeking advisers who actively invest in the asset themselves.
With regulators ‘raising the bar’ on retirement planning, Lonsec Research and Ratings has urged advisers to place greater focus on sequencing and longevity risk as they navigate clients through the shifting landscape.
