FCA examines fund ranking sites over omission of passive funds

The FCA is looking into investor complaints that popular fund ranking websites are omitting passive funds from performance tables, the Financial Times reports.

Websites such as Morningstar OBSR and FE Trustnet sometimes do not include trackers when displaying funds’ performance which could make it hard to determine the best and worst options within a sector, the FT says.

The FCA says regulated firms told the FT it expects “any regulated firm to present information to consumers in a way that is clear, fair and not misleading” and that it will “always consider the information we receive” in response to investor complaints.

Morningstar says that Morningstar.co.uk is not a regulated platform and is a free investor resource that makes available to investors data points and items of analysis to assist them with research. It does not offer advice or sell retail investor products.

FE Trustnet told the FT it is creating a new tool to help identify the best passive funds by spotting those that track the index well consistently and offer the best price.

Morningstar says investors can use its website to compare trackers with actively managed funds in the same sector.