Morningstar gives NZ a D-

Global fund assessor Morningstar says the New Zealand funds management industry is the worst performer in a study it did of 16 countries.

The study - the Global Fund Investor Experience - measured the experiences of managed fund investors in countries in North America, Europe, and Asia.

New Zealand got the worst overall score,  a D- grade.

"Transparency in prospectuses and reports, investor protection, and taxation were the main areas where New Zealand did not rank well," the study said.

Morningstar researchers evaluated and scored countries in six categories: investor protection, prospectuses and investors' reports, transparency in sales practices and the media, fees and expenses, taxation, and distribution practices.

The Morningstar study cited disclosure of portfolio holdings as one of the most important areas needing improvement.

"New Zealand also scored poorly in taxation, due primarily to a comparative lack of tax incentives for long-term investing."

The study found that New Zealand ranked well in distribution choice, transparency in sales and media, and fees and expenses.

Morningstar Head of Adviser & Research Anthony Serhan said the focus of the study was to identify global best practice, and to strive to meet those standards for investors.

"All countries in the study have something to learn, regardless of where they ranked."

The following are the overall country grades, countries listed in order from highest to lowest scores:

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-

- © Fairfax NZ News