Warning sounded on lack of quality in fund ratings

Biases found in best buy lists

Carmen Reichman
clock • 4 min read

Fund rating lists are biased and often do not base their ratings on the quality of the underlying funds, a report has warned.

Best buy lists and fund rating agencies, often used by advisers to select funds for their portfolios, may be misleading as they do not always choose the funds based on their quality and longevity of returns, the research found. This means some clients may be put in funds that are destined to perform well in the short-term but lack other fundamental strengths that would allow them to function well over longer periods. The report by research consultancy Fundscape and Graham Bentley's gbi2 found deviations in the ratings of some funds and their projected returns over a ten-year horizon -...

To continue reading this article...

Join Professional Adviser for free

  • 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

Join

 

Already a Professional Adviser member?

Login

More on Investment

Mabel Insights adds DFM partner

Mabel Insights adds DFM partner

Additional Waverton data to be available on comparison site

Jen Frost
clock 12 November 2024 • 2 min read
Partner Insight: Navigating the great wealth transfer

Partner Insight: Navigating the great wealth transfer

The great wealth transfer represents opportunity and risk in equal measure for financial advisers.

Warwick Bloore Senior Specialist, Adviser Research Centre, Vanguard, Europe
clock 12 November 2024 • 6 min read
Neil Woodford makes YouTube and Instagram appearance with investment channel

Neil Woodford makes YouTube and Instagram appearance with investment channel

Woodford Views is being pushed out across social media

Eve Maddock-Jones
clock 11 November 2024 • 2 min read