Morningstar discloses details of fund manager teams

Philippa Gee 160 byline

Morningstar has forced fund groups to disclose exact details of each individual manager behind funds that are managed by a team.

Measures put in place at the start of June by Morningstar affects funds that describe themselves as being managed by a team and encourages fund groups to instead give names and specific details about the individual managers.

Morningstar no longer gives the option of reporting the management of the fund as ‘team managed’ and will instead detail this information as ‘not disclosed.’

Individual investors can now see this information via the Morningstar website and advisers also have access via the Morningstar workstation software.

With plans to roll out a similar initiative across Europe, Morningstar European data and strategy director Andy Pettit says the disclosure is designed to give investors greater clarity over who is making decisions on their behalf.

He adds: “You can see how long they have been there, what other funds they might have been involved in managing and just have a more complete picture of who is looking after your investments.”

Morningstar also pushed for the same clarity in US back in 2004, which led to regulation being put in place to force disclosure about the manager, as well as their incentive packages.

Pettit also details that he would like to follow up this manager disclosure with more clarity around investment objectives. He says: “We still see a lot of funds which say no more than they are seeking capital growth, which doesn’t tell you a lot about how they are going to achieve that.”

More information about fund manager’s stakes in their own funds, as seen in the closed-ended sector, is also an area which Pettit would like to have disclosed to investors.