Zenith launches new index fund ratings

11 Jun 2021

Zenith today launched a dedicated rating scale for index funds. In direct response to increased demand for a solution catering for the specific nature of index funds, the Research team has created a tailored process and methodology which adheres to our unique approach to reviewing and rating funds. In line with our existing ratings tiers, the new index ratings includes investment grade ratings of Index Highly Recommended, Index Recommended, Index Approved which are displayed in the following manner:

Traditional index products are those funds which:

• track a market-capitalisation/issuer-weighted underlying index, and/or
• track an index that Zenith deems suitable/representative of the sector.

As the number of traditional index products offered to Australian retail investors continues to expand, we’re seeing offerings from the largest fund managers complemented by a growing band of smaller players. We believe that research groups with the necessary systems and contacts in place to act quickly will be best positioned to offer their clients access to an ever-expanding world of opportunities.

The new ratings tiers will be applied as we move through our sector reviews, commencing with Australian fixed interest, Australian equities and property in June this year. More detailed information about the investment process is available on our website or contact the Research team for further information.