Abstract
This paper examines the use and understanding of managed fund ratings in Australia. A survey of individual retail investors suggests information source and selection criteria constructs are more useful in explaining the role of ratings than an approach based solely on expectations of return and risk. There does not appear to be discrimination in the use of rating providers by investors. Reliance on a particular rating is not significantly related to what investors consider the purpose of the rating to be, or the importance they place on rating inputs. Competing rating providers have more explaining to do.
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