Morningstar Manager Research has introduced the Morningstar Medalist Rating for semiliquid funds, marking a significant step in evaluating these increasingly popular offerings as they gain traction among investors in Asia. While the rating methodology mirrors the approach used for mutual funds and ETFs—evaluating investment team and process, performance, and fees—it has been strengthened to address the unique liquidity dynamics inherent in semiliquid structures.
When assessing a semiliquid fund’s investment processes beyond its consistency and repeatability, there are additional factors that warrant closer attention. These include how managers value their holdings, share information, and identify opportunities to deploy capital.
Paramount to a semiliquid fund’s process, however, is how managers handle liquidity risk. There are two levels of liquidity risk: the frequency and…
