Earlier this month Morningstar released its 2015 Global Fund Investor Experience report. The study rates the collective investment scheme (CIS) industries in 25 countries based on how customer friendly they are.
Morningstar gave South Africa a C grade in the 2015 report. This was a slight improvement on its 2013 rating, but still put it towards the bottom of the list.
While the report identified a number of positive aspects of the local industry, the level of disclosure by local funds was highlighted as the key area that needs to be addressed. Together with Australia, South Africa received the lowest rating for disclosure of the countries surveyed.
The study noted that: “South Africa’s legacy disclosure is lacking compared with many other countries in this survey. Funds have not been required to update an offering document annually or after amendments or changes. Additionally, unlike most of the other countries in this survey, there are no required shareholder reports.”
Please click here to read the rest of the article as well as Asisa’s response to the C rating.
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