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Australian Managed Fund Ratings and Individual Investors

Author

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  • Paul Gerrans

    (School of Accounting, Finance and Economics, Edith Cowan University, 100 Joondalup Drive, WA 6027.)

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.

Suggested Citation

  • Paul Gerrans, 2004. "Australian Managed Fund Ratings and Individual Investors," Australian Journal of Management, Australian School of Business, vol. 29(1), pages 87-107, June.
    • Handle: RePEc:sae:ausman:v:29:y:2004:i:1:p:87-107
    DOI: 10.1177/031289620402900111
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    References listed on IDEAS

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    1. H. Kent Baker & Sattar A. Mansi, 2002. "Assessing Credit Rating Agencies by Bond Issuers and Institutional Investors," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 29(9&10), pages 1367-1398.
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    5. Guercio, Diane Del & Tkac, Paula A., 2008. "Star Power: The Effect of Monrningstar Ratings on Mutual Fund Flow," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 43(4), pages 907-936, December.
    6. H. Kent Baker & Sattar A. Mansi, 2002. "Assessing Credit Rating Agencies by Bond Issuers and Institutional Investors," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 29(9‐10), pages 1367-1398.
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    Cited by:

    1. Robert W. Faff & Jerry T. Parwada & Hun‐Lune Poh, 2007. "The Information Content of Australian Managed Fund Ratings," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 34(9‐10), pages 1528-1547, November.

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