Securities research firm Morningstar is proposing
that all managed products sold to investors should have
increased and equivalent disclosure standards.
The push comes as the Securities and Exchange
Commission (SEC) attempts to introduce increased disclosure for
mutual funds. In a comment letter sent to the regulator, Morningstar
expressed its support for adding transparency and comparability
to the mutual fund market by changing the ways securities are
labelled, and creating standard metrics for calculating common
investor considerations like duration.
In an effort to ensure investors and analysts have
all the relevant information, Morningstar’s director of policy
research, Scott Cooley, said these standards should also be
applied to other collective investment products.
"There should be a level playing field across collective
products," said Cooley. "You can have substantially similar
product – like an investment trust that is similar to
a mutual fund – and it’s odd...