Zenith moves to rate ETFs
Research house, Zenith Partners, has launched a specialist arm dealing with exchange traded funds (ETFs).
The company launched its ETF capability by providing a rating to a new ETF managed by Russell Investments and Zenith director, David Wright said he expected increasing client demand for ETF products.
He said that following on from the Russell review Zenith would release other ETF ratings and these would be supported by a comprehensive sector report.
Wright insisted that Zenith would apply the same investment criteria used in its unlisted managed funds research to the ETF landscape “with sub-standard providers being filtered out of our process”.
However it outlining its view of ETFs as a product, Zenith said that while there was clearly increased interest and demand for ETFs, the company believed advisers and investors’ understanding of ETF pricing structures and operational processes was not extensive.
“For example, there are potential withholding tax issues, not only with offshore ETFs, but a number of locally-domiciled vehicles as well,” the ratings house said.
Zenith handed the Russell High Dividend Australian Shares ETF, which was launched in May, a “recommended” rating.
AUTHOR
Mike Taylor
Recommended for you
ASIC has suspended the AFSL of a Sydney fund manager, which operates a managed investment scheme, over repeated failures to comply with licensee obligations.
Wealth Data has shared an updated ranking of the five largest Australian financial advice licensees, with just 59 advisers separating the firms in the lower half of the table.
United Global Capital complaints to AFCA have quadrupled since August and are highly likely to rise further as it retains membership for another six months.
An advice executive has shared how advisers should regularly assess the performance of their licensee, regardless of whether they are looking to leave, in order to prevent any problems from arising.
