Morningstar ratings predict underperforming Australian superannuation funds, impacting investment choices.
The study looked at how well Morningstar ratings can predict the future performance of Australian superannuation funds. They found that these ratings can help identify funds likely to do poorly in the future, but struggle to differentiate between highly and moderately performing funds. They also discovered that highly rated funds tend to be smaller in size and older in age. This information can be useful for fund managers, advisors, investors, and trustee boards when choosing superannuation funds for investment.