Fundsters with all-cap products, Morningstar's not creating an all-cap descriptive category. Yet the Chicago-based mutual fund ratings specialists might another way for such mutual funds to differentiate themselves.

Morningstar research vice president John Rekenthaler revealed that tidbit yesterday in the latest edition of his recently resurrected insider's column. Rekenthaler offered the possibility in response to feedback from Congress All Cap Opportunity Fund [profile] PM Peter Andersen. Here's Rekenthaler's idea:

We might be able to work up a compromise. It seems to me that Morningstar could carry a data point for self-identified all-cap or flexible-cap funds. That data point wouldn't be as precise as a style box or category because it would not be assigned quantitatively. It would instead be the word of the fund company.

In the same column, Rekenthaler also briefed readers on the money market mutual fund debate (in advance of this week's hotly anticipated SEC meeting on the subject) and on return reporting problems in the hedge fund world. 

Edited by: Neil Anderson, Managing Editor


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