Six stars shine for Investor Web
InvestorWeb is to introduce a six star rating system for managed funds early next month.
The new rating system is the fourth star rating system in the Australian managed funds market, following star rating systems developed by Morningstar, InvestorSource and Assirt. However, this is the first six star system as all the others are five star.
InvestorWeb chief executive Otto Buttula says the group's Web site will take on the star rating system in response to the retail market preference for a more simple recommendation structure, says.
"Our recommendation process has always been verbal with its strong buy and sells. A star rating is more simple and direct, and people seem to like it," Buttula says.
He says the star rating also differentiates product range, while keeping a better value proposition for the market.
The idea behind using six stars, Buttula says, is to provide a distinction between Investor Web and other research houses using the system.
"The six star funds will further define the actual leaders, and the best funds, according to our research," Buttula says.
InvestorWeb's specialist financial adviser site, investorweb.pro.com.au, will retain the verbal 'call for action' recommendations as well as featuring the star ratings.
The site is also undergoing upgrades to its equities section, and development on star ratings for equities should be ready towards the middle of the year.
InvestorWeb will launch the six star rating system at a gala function on 1 March.
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