By Nicole Szollos
RESEARCH house Morningstar has rated Credit Suisse Asset Management Australia with an overall score of four in its latest report of the manager.
Morningstar’s report says the rating means Credit Suisse is a sound funds manager with solid financial performance, good business strategy and a secure management team.
The group has increased its funds under management from $10.9 billion to $22.5 billion in the two years to December 31, 2001, delivering strong growth up 142 per cent to year’s end.
However, while Credit Suisse’s compliance procedures were seen to be of a high standard, Morningstar says there is room for improvement in its retail client processing.
To its credit, the group is currently addressing this issue and establishing a new in-house registry administration system that is expected to improve processing times as well as management of the master trust and wrap business, the report says.
Morningstar also believes Credit Suisse needs to improve its Web site, which it says “remains below industry best practice”. The group is also currently addressing this issue.
“A Web site upgrade is expected by the end of 2002, but currently there is no access by investors to statements of holdings, and online switching is not available between funds,” the report says.
Other sectors of the business that Morningstar deems strong and with a positive outlook are Credit Suisse’s strategic planning division, which it says is well thought out and draws its basis from strong analysis, and human resources, which has developed a successful staff retention policy resulting in low staff turnover.
“Senior investment staff retention is effective, with each team head having been at Credit Suisse for at least five years,” Morningstar says.
