MORNINGSTAR
March 2021 | WealthDFM
Assessments of Value A Useful Addition to the Library of Fund Reports Andy Pettit, Director, Policy Research, Morningstar, considers the asset management 'Assessment of Value' reporting and looks at how effective and useful these reports are for investors and advisers. He also assesses how the reports should be used in fund selection, and where asset managers need to do better in the next set of reports due soon.
D
isclosure is a huge part of many financial regulations. Regulated disclosures attempt to ensure that investors get easy access to a minimum level of essential information about the investment products available to them. The corollary is that investors can be inundated with reams of documentation from which its hard to see the wood for the trees - prospectuses are typically intimidating, lengthy documents full of technical details in industry and legal lexicon. Annual and semi-annual reports are a bit more penetrable, typically including a fund manager overview and the latest portfolio holdings. The saving grace for investors was supposed to be the Key Investor Information Document (KID), but its successor is in danger of being a retrograde step.
WealthDFM.com
UK fund investors saw yet another document added to the list in 2020, in the form of an annual Assessment of Value. And heading into 2021 and beyond, firms and products will have to publish a growing set of ESG-related disclosures.
The saving grace for investors was supposed to be the Key Investor Information Document (KID), but its successor is in danger of being a retrograde step PRINCIPLES OF GOOD DISCLOSURES The most useful disclosure requirements insist on uniformity across submissions and presentations,
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