Mutual fund investors in the Netherlands have the best experience in Europe according to a country ranking by Morningstar experts.
Morningstar rated investor experience based on regulation, taxation, disclosure, fees, expenses, and sales and media.
However, the Netherlands does not top the entire list, which extends beyond Europe. Korea and the US come joint first for investors' experiences there.
The analysis was based on information from publicly available sources, Morningstar data, and Morningstar experts located around the world.
Here is the complete list of grades:
United States: A
The Netherlands: A-
United Kingdom: B+
New Zealand: C+
Hong Kong: C
South Africa: C
The US achieves the highest score for the fourth year running as it boasts relatively low expenses and strong disclosure, while its sales and media category grade is average.
Korea also received an A this year because of its improved sales practices, up from a B+ in 2013.
Changing regulation helped the Netherlands move up to top place in Europe, after a ban on commission fees.
In 22 of the 25 countries evaluated, banks and insurance companies are named as one of the dominant fund sales channels. The next most common channel, cited in seven countries, are independent advisers.
“Every market we examined has areas for improvement, and we hope our research about the experience of fund investors worldwide will help serve as a catalyst for positive change,” says Christopher Traulsen, Morningstar’s director of manager research, Europe, Middle East and Africa.
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