Morningstar has changed its methodology for rating closed-ended funds, with the aim of making it easier for investors to compare risk-adjusted performance against open-ended equivalents.
The ratings agency is now using net asset value to determine a fund's rating rather than the market closing price. It is also using its own categories to compare funds, where previously it used the Association of Investment Companies sectors. This change will make analysis more relevant, by comparing funds against peers from both the open-ended and closed-ended spheres, as well as exchange-traded funds. "The changes to our closed-end fund rating methodology are intended to assist advisers in their whole-of-market proposition", said Jackie Beard, director of closed-end fund resea...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
