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Standard & Poor’s Fund Services (S&P) has placed the Australian Ethical Large Companies Fund ‘on hold’ following the replacement of the fund’s lead portfolio manager.
David Macri replaced James Harvey on 1 July following an internal promotion, which Australian Ethical said reflected the team’s desire to concentrate its domestic equities research capability in Sydney, according to S&P.
Harvey will remain in Brisbane as a full-time equities analyst.
S&P affirmed the Australian Ethical Large Companies Share Fund’s two-star rating in its 2009-10 Australian equities large cap review due to concerns around team stability, the strength of key personnel and the decentralisation of the team, S&P said.
While Macri has a high degree of investment experience, his abilities as a portfolio manager have yet to be tested, said S&P analyst Andrew Yap.
“Macri is a relatively recent appointment to Australian Ethical and a key challenge will be re-energising the team following a period of heightened instability,” Yap said.
