Wednesday, May 20, 2009

Good Morningstar

News out in New Zealand's Business media today about Morningstar's (incidentally a Berkshire Hathaway, Warren Buffett owned vehicle) ranking of our mutual funds sector and I would argue as a spin-off the NZ financial sector as a whole, should be of surprise to those who only read the sports pages and gossip and perhaps the hapless Mark Weldon, CEO of the NZX.

New Zealand ranked a D minus rating.

As far as my major sphere of interest goes, the stockmarket, I have been banging on about how "wild west" our stockmarket regulation and oversight have been in this respect for 10 years.

The guts from Morningstar for me:

Morningstar researchers evaluated and scored countries in six categories—investor protection, prospectuses and shareholders’ reports, transparency in sales practices and the media, fees and expenses, taxation, and distribution practices. Read full article PDF format

"Investor protection" and "transparency" are two major planks of my rantings and Morningstars.

Recent capital raisings on the NZX have been the latest outrage to be foisted on New Zealand stockmarket investors, with protection for large shareholders managed by the NZX and Securities Commission laws at the centre of capital issues but at the same time leaving smaller investors like my good self drowning in a pool of bile filled anger over being shafted once again.

Mark and his directors down in windy Wellington in that flash building on the waterfront and those not far from him at the Securities Commission should take note.

This time, these are your contemporaries saying this about you, not the investors that keep getting the blunt end of your regulatory axe and perhaps you might listen now that it is your buddies saying this?

One can only hope.

Until then the swirling bile will keep me critical.

The Rankings by Morningstar

United States: A
China: B+

Italy: B
Japan: B
Netherlands: B

Taiwan: B
Canada: B-
France: C+
Switzerland: C+
United Kingdom: C+
Australia: C

Singapore: C
Germany: C-
Hong Kong: C-
Spain: D
New Zealand: D-

Related Share Investor Reading

Related Amazon Reading

Morningstar Guide to Mutual Funds: Five-Star Strategies for Success
Morningstar Guide to Mutual Funds: Five-Star Strategies for Success by Christine Benz
Buy new: $11.53 / Used from: $9.25
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c Share Investor 2009