Morningstar, a US fund rating system, goes live in the UK this week, delivering a star-rating system ...
The website, at www.morningstar.co.uk, assigns funds a star rating that ranges between five for the top decile of funds in any one Morningstar-created category to one star for the bottom 10%. The number of stars awarded is calculated on risk-adjusted performance history over a three-year time scale. Only funds with at least three years of performance history are given ratings by Morningstar.
The 25-plus categories are generated by analysis of the funds' underlying holdings. Within the UK, funds will be categorised as large, mid or small cap. There will be no equity income or equity and bond categories. Funds with up to 35% equity holdings and the balance in fixed interest will be categorised as cautious managed, while funds with up to 60% in equity are classified as moderate managed, and 75% is considered aggressive managed.
By Andy Wild
What made financial headlines over the weekend?
Pensions neglect to be criminal offence
All-day event on 24 April
Consequences could be more severe than in stress tests
AFH has six segregated mandate funds