The Morningstar Categories for funds in the Malaysia Private Retirement Scheme universe were first established shortly after the establishment of the initiative by the Malaysian Government to help investors make meaningful comparisons between Investment funds. Morningstar regularly reviews the category structure and the funds within each category to ensure that the system meets the needs of investors and keeps pace with market developments.
The categories are based on the following principles:
- Proper Evaluation: Every category should form a benchmark against which a manager’s ability to add value relative to peers with similar investment exposures can be meaningfully measured.
- Transparency: The rules defining each category should be clearly stated such the asset managers and investors can easily determine the rationale for a fund’s classification.
- Independence: A funds classification is based on Morningstar’s independent analysis of its holdings, objective and performance.
- Stability: With the exception of a clear change to a funds strategy, which will be addressed at such time as the change is evident, a funds categorization is based on its positioning through time with the trailing three years the default period evaluated. This enhances the stability of the classifications and is aligned with the interests of fund investors, who generally use funds as longer-term investments.
The categories include funds which are domiciled in Malaysia and registered as Private Retirement Scheme funds.
You can download the complete Morningstar Categories for funds in Malaysia PRS universe here.
