US rated best location for fund investors

The US has been highlighted as the best place for fund investors following new analysis from Morningstar.

America received an A rating in the recent evaluation of 16 different countries. In contrast, New Zealand and Spain gained the lowest rating of D, while the UK was rated C+ alongside Switzerland.

The rating takes several factors, such as transparency, investor protection and investment choices, in to consideration to compare countries.

John Rekenthaler, vice president of research at Morningstar, said: ’Five years ago, Morningstar launched Stewardship Grades in the United States that evaluate the degree to which fund companies put investors first.

’These grades have been a catalyst for positive change in the fund industry. We hope our global study will expand the dialogue about best practices for the mutual fund investor to investment companies, distributors, and regulatory bodies around the world.’

Morningstar found that investors in the US pay less than 0.75 per cent for fixed-income funds and around one per cent for equity funds. Despite its overall A rating, the country scored a C for investor protection.

The lack of portfolio holdings disclosure and high levels of capital gains tax counted against New Zealand. ADNFCR-2318-ID-19164990-ADNFCR