S&P Capital IQ to close fund rating and research service

S&P Capital IQ is set to close its fund research and rating service in March, Investment Adviser can reveal.

The company, which has been carrying out fund research since 1990, has written to clients telling them it is “likely to discontinue its fund research and funds ratings/gradings business”.

It said it expected this to happen “on or around March 31 2014”. The company added it would not impact other services it offered.

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The company’s lead analysts include Kate Hollis, global sector head for fixed income & alternatives, Peter Fuller, sector head for the UK and Europe, and fund researchers Linda-Jane Coffin and Randall Goldsmith.

The company distributes its fund gradings and research reports to wealth managers and advisers via several of the UK’s platforms - Transact, Trustnet, Ascentric, Pershing and Aviva.

The news will be a potential boon for rivals including major rating and research house Morningstar and newer incarnations including OBSR founders Richard Romer-Lee and Nigel Whittingham’s Square Mile Consulting and Research and FundCalibre, a joint venture between Chelsea Financial Services and Albermarle Street Partners.

S&P Capital IQ rates funds funds from major groups including Invesco Perpetual, Insight Investment, Legal and General and Schroders.

A spokesperson for S&P Capital IQ declined to comment.