Assirt gives three stars to Zurich funds
Zurich Financial Services(ZFS) new range of multi-manager products has received a less than sterling debut rating fromAssirt, and despite some strengths, has been awarded a competent grade and a three star ranking.
The first-time rating of ZFS comes a few months after the group launched its new product range late last year, according to Assirt research analyst Jody Fitzgerald.
Fitzgerald says ZFS has been rated as the group is preparing to get its new multi-manager, style neutral product range to market.
Assirt chief executive Krystyna Weston praised ZFS’s investment structure saying, the group offers investors an exposure to some of the industry’s more highly regarded managers through the one product which would be attractive to the broader investment community.
The Assirt report also rated ZFS’s business management and the group’s compliance and customer service capabilities as strong.
ZFS’s multi manager capabilities were also praised by Assirt, with the report stating that the manager’s selection process involves an appropriate combination of quantitative and qualitative assessment.
Its underlying managers are chosen based on process, performance and their complementarity to the investment style of Zurich Scudder. ZFS treats Zurich Scudder with the same level of scrutiny as the external managers and therefore can be terminated for process or performance issues.
However, despite giving the group’s capabilities the green light, Assirt says while the initial work undertaken was adequate, it is concerned with the level of ongoing style monitoring of the combined portfolio.
Assirt is also concerned with ZFS’s appointment of an external asset consultant to assist the group in the manager selection process. The research house says it is concerned with Zurich’s ability to quickly implement appropriate changes to the manager line up given the level of information supplied and the frequency of the reviews.
The other drawback for ZFS in the report was that each of its investment sectors - Australian equities, international Equities, diversified fixed interest and listed property - were assessed as having only competent capabilities.
Recommended for you
Unregistered managed investment scheme operator Chris Marco has been sentenced after being found guilty of 43 fraud charges, receiving the highest sentence imposed by an Australian court regarding an ASIC criminal investigation.
ASIC has cancelled the AFSL of Sydney-based Arrumar Private after it failed to comply with the conditions of its licence.
Two investment advisory research houses have announced a merger to form a combined entity under the name Delta Portfolios.
The top five licensees are demonstrating a “strong recovery” from losses in the first half of the year, and the gap is narrowing between their respective adviser numbers.
