Australia’s funds management industry would be more competitive in the global scene if it chose to embrace disclosure standards of other markets, an industry researcher has claimed.
Morningstar’s head of research Anthony Serhan said, as Australia tries to position itself as a global hub for the investment industry, local fund managers need to actually meet the disclosure standards of other markets.
“It’s ironic that at a time with IFSA [the Investment and Financial Services Association], and the funds management industry here is lobbying the government to say we need to get some changes to make us more competitive in the Asian scene.
“A lot of the local managers are still not prepared to meet the minimum disclosure standards of other markets.”
Serhan’s comments stem from Morningtar’s latest international shares research report of 41 international shares strategies.
The report revealed the global equities space is growing, with more players entering the market.
“There are still more global players that haven’t looked to get distribution in the Australian market. So looking at this, competition is hotting up and it’s not going to go away and that’s a good thing for investors generally speaking,” he said.
The report also found there are a growing number of portfolio managers putting their own assets to work in their own funds, with the cash figure of assets disclosed.
“It’s not the sort of thing that will make or break a decision on in terms of our assessment of the fund manager, though there is correlation between the managers that we like and those where we see the fund manger actually putting some of their assets to work.”
Of the 41 strategies reviewed, 28 disclosed the range of personal investment of its lead portfolio mangers. While five lead portfolio managers have more than $1 million invested in the funds they manage.
“We try to raise the bar where we can in terms of disclosure, whether it be for portfolio holdings, after tax information or personal investment,” Serhan said.
“This is the first time we think any information like this has been published, it’s started the ball rolling. Hopefully it will promote some more discussion in the industry.”
The Morningstar report awareded five managers with its highly recommended rating: Bernstein Value, Credit Suisse (Capital International), GMO, MFS and Platinum International.
