IOOF keeps four star status
Research houseMorningstarhas given the thumbs up toIOOFafter the fund manager appointed two international specialist fixed interest managers for its suite of multi-sector funds.
Morningstar’s approval, issued today in the group’s latest report into the manager, has meant that IOOF’s existing four star rating will be retained, which in the research house’s view marks IOOF as a “very good quality” fund manager.
IOOF had no exposure to international fixed interest in its multi-sector funds until it appointed US based Western Asset Management (WAM) and London based Rogge Global Partners to manage the international fixed interest component of the multi-sector funds in November 2000.
Morningstar says the move was a good strategic decision, but has cautioned that the reporting requirements between the subcontracted fixed interest managers and IOOF’s multi-sector fund partner, Perennial Investment Partners, need to be closely monitored.
“In Morningstar’s opinion, Perennial’s monitoring of WAM and Rogge is comprehensive, however the bedding down of reporting requirements has been an issue, historically, and ongoing adherence needs to be demonstrated,” the report says.
IOOF, which has a joint venture arrangement with Perennial for the management of IOOF funds, has allocated to both Rogge and WAM a 50 per cent slice of the international fixed interest component of the multi-sector funds.
Morningstar has rated Rogge with a sector strength rating of 7.9 out of 10, while scoring WAM 7.69 out of 10. Morningstar suggests both scores were limited by it not visiting the two international managers on site.
Sixty five per cent of all IOOF funds have either a four or five star rating from Morningstar. However, in Morningstar’s latest review, there was a slight increase in the number of IOOF funds with a one or two star status, and a slight decrease in the number with four or five star status.
Recommended for you
Digital advice tools are on the rise, but licensees will need to ensure they still meet adviser obligations or potentially risk a class action if clients lose money from a rogue algorithm.
Shaw and Partners has merged with Sydney wealth manager Kennedy Partners Wealth, while Ord Minnett has hired a private wealth adviser from Morgan Stanley.
Australian investors are more confident than their APAC peers in reaching their financial goals and are targeting annual gains of more than 10 per cent, according to Fidelity International.
Zenith Investment Partners has lost its head of portfolio solutions Steven Tang after 17 years with the firm, the latest in a series of senior exits from the research house.
