Global Fund Investor Experience report

Morningstar’s Global Fund Investor Experience report says that Australia scored badly in terms of regulation and taxation. The report covers the experiences of managed fund investors in 25 countries across North America, Europe, Asia and Africa and grades countries across four key areas, including: fees and expenses; sales and media; disclosure and regulation; and taxation. “Morningstar researchers generally favour: active fund regulation; a low investor tax burden; more disclosure; lower fund fees; a varied fund distribution system; and local news media that helps to educate investors about their choices,” Morningstar says. Australia’s overall grade was B- (up from C+ in 2013) but scored a D in the area of tax and regulation. This was lower than the C- score in the last report. “Australians continue to pay some of the highest fund taxes of any country in the report, including a consumption tax for the investment management service,” says Morningstar.