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Morningstar unveils investment trust ratings

Fidelity’s Anthony Bolton is one of four managers who have had their trusts rated as ‘neutral’, as Morningstar launches its investment trust ratings service on 32 trusts.  

Other trusts given a neutral ratings are the Henderson Far East income, Martin Currie Pacific trust and the Merchants trust. None of the trusts initially rated was given a negative rating.

The ratings are gold, silver, bronze, neutral and negative, which accompanies a rating of between one and five stars based on net asset value.

Morningstar has selected those to rate based on the assets under management in accordance to the Association of Investment Companies sectors, data available and relationship with the manager.

Ratings will be reviewed every six months with Morningstar asking for data at least twice a year.

Morningstar UK head of close-ended funds Jackie Beard says: “We want to have ratings on over 100 funds by the end of the year, but it going to be a challenge because it’s about co-operation from the managers with what we are doing.”

Beard says that they are launching two new sectors on its service, UK equity income and UK flexible cap.

She adds: “There is a bias at the moment in the ratings towards positive. I think that is natural because a lot of it has come from existing relationships we have with managers.”  


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