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"To help investors keep level heads and perform their due diligence on these often opaque, arcane, and more costly vehicles, Morningstar has launched the Morningstar Medalist Rating for Semiliquid Funds, a forward-looking assessment of semiliquid strategies’ performance potential versus relevant peers and traditional mutual and exchange-traded funds. We expect to launch initial ratings on a set of interval funds in the third quarter of 2025, which will be displayed on Morningstar.com..."
"Our ratings will shed light on the potential benefits as well as the true costs, risks, and limitations of a wide range of vehicles, including interval funds, tender-offer funds, nontraded business development companies, and nontraded real estate investment trusts in the United States, as well as certain European long-term investment funds, United Kingdom long-term asset funds, and certain Australia-domiciled managed investment schemes."
"Over the years, firms have offered various liquid alternatives approaches—like long-short, market-neutral, merger arbitrage, and others—intended to bring hedge-fund-like strategies to the masses. They’ve all had plausible rationales, and some have proved to be enduring investments, but they are also fraught with risk and hard to use well. Investors still lack awareness of these funds’ challenges and risks, and often fail to form realistic expectations for them."
The new Morningstar ratings will be for interval-funds (IVs) and some nontraded funds. They will be available only in Morningstar's expensive professional products.
A typical feature of these semiliquid funds is that redemptions are restricted and access is through advisors.
BTW, MFO Premium (MFOP) has information in many interval-funds at low-cost (order of magnitude less that Morningstar?).
"They will be available only in Morningstar's expensive professional products."
The article mentioned ratings will be displayed on Morningstar.com "as well within products in the Direct Platform, including Morningstar Direct, Direct Advisory Suite, and in data feeds associated with select interval funds." I assume ratings will be available on Morningstar.com but full reports will only be accessible via the M* Direct Platform. But, I don't know for sure...
Comments
A typical feature of these semiliquid funds is that redemptions are restricted and access is through advisors.
BTW, MFO Premium (MFOP) has information in many interval-funds at low-cost (order of magnitude less that Morningstar?).
The article mentioned ratings will be displayed on Morningstar.com
"as well within products in the Direct Platform, including Morningstar Direct,
Direct Advisory Suite, and in data feeds associated with select interval funds."
I assume ratings will be available on Morningstar.com but full reports will only
be accessible via the M* Direct Platform. But, I don't know for sure...
Thanks for the article. Very interesting.
https://institutional.fidelity.com/advisors