18 December 2012

How reliable are Fund Ratings?

When rating analysts at Morningstar give the thumbs up to nearly two-thirds of the funds they review it appears that their firm may be "less fund watchdog, and more fund lap dog." (MarketWatch Annual Lump of Coal Awards). Off-the-Shelf ratings are no substitute for independent advice and evidence that is based on actual investment performance without undue emphasis on 'subjective' judgements.