Morningstar offers SRRIs for Ucits funds

Investment research house Morningstar has unveiled its calculation of the synthetic risk reward indicator (SRRI), a measurement that all Ucits funds are required to provide as part of the Ucits IV regulations.

The rules state that investment firms must include an SRRI score in their key investor information documents (Kiids), which became obligatory on 1 July, with firms granted a year to comply.

Morningstar hopes its SRRI will gain traction in the industry because it is independent and promises to be consistent. The question of comparable SRRI reporting may well become a live issue because the European Securities and Markets Authority (ESMA), the body which sets the rules, has left considerable room for interpretation in how funds are categorised into ESMA fund types and how performance is “back-filled” for funds less than five years old.

Andy Pettit, director of pan-European data and research strategy for Morningstar, said: “These variables are likely to cause inconsistency in SRRI calculations across the industry, despite the best intentions of the SRRI to be a meaningful figure that is universally comparable.”

©2011 funds europe

HAVE YOU READ?

THOUGHT LEADERSHIP

The tension between urgency and inaction will continue to influence sustainability discussions in 2024, as reflected in the trends report from S&P Global.
FIND OUT MORE
This white paper outlines key challenges impeding the growth of private markets and explores how technological innovation can provide solutions to unlock access to private market funds for a growing…
DOWNLOAD NOW

CLOUD DATA PLATFORMS

Luxembourg is one of the world’s premiere centres for cross-border distribution of investment funds. Read our special regional coverage, coinciding with the annual ALFI European Asset Management Conference.
READ MORE

PRIVATE MARKETS FUND ADMIN REPORT

Private_Markets_Fund_Admin_Report

LATEST PODCAST