India and America the world’s most investor friendly market, Morningstar gave top grade in Disclosure Best Practice

India and America are two of the world’s most investor-friendly markets in terms of portfolio disclosure best practices. This was said in a global study conducted by Morningstar Inc., which graded 26 markets in North America, Europe, Asia and Africa. Australia was the only country included in the bottom grade, which means that its disclosure framework was the worst.

According to the report, the Disclosure System of India and America proved to be the best on all parameters. Christina West, director of manager research services and member of the study team at Morningstar, said the US performed as best as ever, while India has consistently included global best practices in its disclosure framework. India has also set a high standard with monthly portfolio holdings disclosure.

Fund managers in India publish the entire portfolio allocation.

Australia is the only country not included in the study, which does not have a regulated portfolio holding disclosure framework. Most fund managers in Australia publish the top 10 holdings on their website. On the other hand, fund managers in India publish the entire portfolio allocation and also tell them what percentage of the entire fund has been invested.

26 countries divided into 5 grades

Morningstar divided all 26 markets into 5 grades based on their disclosure framework in the study. These grades are – Top, Above Average, Average, Below Average and Bottom. 6 parameters have been adopted for this, including ease of understanding prospectus, fees, portfolio holdings, portfolio manager and compensation disclosures, ESG & stewardship and sales disclosures.