Morningstar has revealed how it intends to present past fund performance post-RDR, following the introduction of new ‘clean' share classes.
After an industry-wide consultation with 65 industry representatives, Morningstar is proposing to adopt an 'unadjusted' approach. This will mean appending the past performance records of existing fund retail classes to those of the new RDR share classes, thereby retaining the impact of the previously higher fees of existing classes. There will be no adjustment for the differences in fees between the old and new classes. The alternative 'adjusted' route option, restating the track record of the older share class to reflect the performance that would have been achieved had the fees appl...
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