Global Fund Investor Experience | May 2009©2009 Morningstar, Inc. All rights reserved. The information in this document is the property of Morningstar, Inc. Reproduction or transcription by any means, in whole or inpart, without the prior consent of Morningstar, Inc. is prohibited.
Much has been written about the rights o the shareholders o common stock, rom a global perspective. It iswell known that some jurisdictions saeguard the rights o stockholders better than do other jurisdictions. Thesepolicy dierences have sparked debate, and the gradual development o “best practices” documents.The goal o this report is to begin a similar dialogue about best practices, only rom the perspective o themutual und shareholder. (Although some o the questions in this report apply only to smaller, retail investors,other questions apply equally to retail and institutional owners. Thereore, this report should be interpretedas applying to
und shareholders, not just individual investors.) Just as with stocks, some jurisdictions oerrelatively riendly investment climates or mutual und owners, and others less so. This report analyzes 16mutual und marketplaces, highlighting their strengths and weaknesses. The ndings are summarized via a serieso scores. These scores roll up into grades at the topic level, and then eventually into a single nal grade oreach country.Note that this report examines the issue rom multiple perspectives: the practices o industry manuacturers(that is, money managers); the practices o industry distributors; the structure and eectiveness o regulatorybodies; disclosure policies; the tax code; and the role o the media. Thereore, the report should not be construedas grading each country’s “und industry.” It aims much more broadly than that, in recognition o the act thatthe mutual und investor experience is shaped by ar more than the und industry alone. The countries studied are:The topics are:Investor ProtectionTransparency in Prospectus and Shareholder ReportsTransparency in Sales Practices and MediaFees and ExpensesTaxationDistribution/ChoiceAustraliaCanadaChinaFranceGermanyHong KongItalyJapanNetherlandsNew ZealandSingaporeSpainSwitzerlandTaiwanUnited KingdomUnited States