Colonial starring in NZ role

The New Zealand branch of Colonial First State Investment Managers (CFSNZ) has been rated a “very good” quality organisation by Morningstar and given four stars in the re-search house’s first assessment of the company.

The New Zealand branch of Colonial First State Investment Managers (CFSNZ) has been rated a “very good” quality organisation by Morningstar and given four stars in the re-search house’s first assessment of the company.

The four star rating puts CFSNZ one star behind its Australian counterpart Colonial First State (Australia) which has had a five star rating for 18 months.

CFSNZ achieved the four star rating despite a slightly below average rating of its corpo-rate strength by Morningstar.

“Although the ultimate parent, Colonial Limited, is profitable, CFSNZ operated previ-ously at a loss - there are now signs of a turnaround and an enthusiastic and competent team is committed to achieving profitability,” Morningstar says.

Head of CFSNZ, Bruce Abraham, says the Morningstar rating endorses the company’s innovative approach to investment management. He says CFSNZ initiated changes over two years ago that are now starting to pay dividends.

“At that time we chose not to be rated by Morningstar as we were introducing so many new developments,” Abraham says.

“To have been awarded such a strong rating just two years later is a positive affirmation of the direction we chose to take and the success we have achieved.”

Morningstar says the ratings apply only to CFSNZ and its managed funds, not the parent company Colonial.