Zenith introduces dedicated index fund rating



Ratings house Zenith Investment Partners has launched a framework specifically for rating index funds, to meet increased demand for a dedicated rating scale.
The first ratings were available through Zenith’s adviser site, and as with Zenith’s existing ratings tiers, the new index ratings would include investment grade ratings of ‘Index Highly Recommended’, ‘Index Recommended’ and ‘Index Approved’.
Bronwen Moncrieff, Zenith general manager and head of research, said while the business had been rating index funds for many years, the launch of a dedicated index rating scale would meet increased demand for a high conviction rating solution specific to this sector of the investment universe.
“As the number of traditional index products offered to the Australian retail investor expands, we’re seeing offerings from the largest fund managers complemented by a growing band of smaller players,” Moncrieff said.
“Responding quickly and effectively to this evolving market need is important in being able to offer advisers access to all the information required to make the right investment recommendations for their clients.
“We’re confident the dedicated index rating methodology will be viewed favourably by the market, and afford greater choice and information for advisers.
“Its rollout over the coming months forms an important part of our research strategy and service offering.”
Recommended for you
ETF investors would be wise to consider global or European exposure for their equity ETF allocations, according to AXA IM, with US government action expected to hit both its equity and bond performance.
A specialist ETF provider is seeking to become “the new Betashares” with its active ETFs, thanks to its use of algorithms to achieve outperformance.
Platinum Asset Management has entered into binding terms for a merger with L1 Capital with the firm to be renamed upon completion
Prime Value Asset Management has launched a retail fund investing in microcap companies, a new version of its existing wholesale offering.