Fund stewardship by morningstar.ca

[Norbert Schlenker]

Morningstar Stewardship Grades, designed to assess how well mutual-fund companies serve the interests of their investors, were released today for 27 Canadian fund companies.

The rating system, with grades that can range from A to F, are based on a composite scoring system that considers four main components of stewardship: corporate culture, manager incentives, fees and regulatory issues. For details of the Stewardship Grade Rating System, click here.

Five of the 27 Canadian companies received the top grade of A, and another six received a B. Fifteen companies received a C grade, and one company was graded D. No firms received the lowest grade, which is F...

h/t Jim Daw

P.S. Jon Chevreau says IFIC appealed to M* HQ to bury the report.

[DanH]

Norbert, the response to your post seems to mirror the response by the financial media - relative silence compared to the response to past Morningstar special reports/studies. But there have been a few pieces written about this - and the story continues to get interesting (at least to some of us in the industry).

Morningstar Research Doesn't Get Respect it Deserves (Tom Bradley in last Saturday's Globe)

Morningstar escalates war of words with ific over mutual fund stewardship grades (Chevreau's blog)

Firms need to focus more on fiduciary duty (Chevreau in the Post)

[kcowan]

...
Firms need to focus more on fiduciary duty (Chevreau in the Post)

I am pleased to see that TD Asset Management gets the only B. It would have been nicer if it was an A but then there were none of those among the big players. Too many Cs!

[DanH]

...
Firms need to focus more on fiduciary duty (Chevreau in the Post)

I am pleased to see that TD Asset Management gets the only B. It would have been nicer if it was an A but then there were none of those among the big players. Too many Cs!

I'm not sure I agree with many some of the scores, particularly TD's, but it is what it is. To Jim Daw's point, however, a 6.5 out of 8, on pure percentage terms seems to be better than a B. But it's easy to play arm-chair quarterback - much easier than actually throwing a touchdown pass.

[DanH]

For those interested, here's my take on this issue:

Stewardship: common sense not controversial

[IdOp]

DanH, there is a minor misprint in paragraph 3 of your article:

they're are ----> they are

[DanH]

DanH, there is a minor misprint in paragraph 3 of your article:

they're are ----> they are

Hey thanks. It's fixed.