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.”
AUTHOR
Chris Dastoor
Recommended for you
Women are expected to inherit US$124 trillion through the intergenerational wealth transfer, but Capital Group has found they are twice as likely to rely on social media for advice over a financial adviser.
Challenger Investment Management has raised $350 million during the offer period for its new ASX-listed investment structure.
A week after Lonsec downgraded multiple funds from Metrics Credit Partners, rival research house Zenith Investment Partners has opted to retain its ratings for the same funds.
Strong adviser engagement has helped Praemium reach $1 billion in inflows on its Spectrum offering, with a deal with Western Australian wealth firm Euroz Hartleys expected to add as much as $2 billion.
