MIR team changes see fund 'on hold'

Substantial changes to the investment team and processes behind the Advance Concentrated Australian Shares Fund has seen it placed ‘on hold’ by ratings house Standard & Poor’s (S&P).

S&P announced that it had placed the fund 'on hold' after being advised about the changes by the fund’s investment manager, MIR Investment Management.

It said following a period of disappointing performance, MIR had reviewed its investment process and had decided to restructure its qualitative research process.

S&P said the changes included a smaller Australian qualitative analyst team, resulting in the departure of two of its members, including the team’s former head, Derek Ovington.

It said the Australian qualitative team would now consist of Phil Hudak and a second analyst who is yet to be recruited, with MIR’s Singapore-based Asia qualitative team continuing to provide coverage of some Australian stocks.

S&P said while MIR believed the restructure would lead to an improved investment process, the ratings house held concerns over the impact of the changes, including the effect on team continuity and stability.

The 'on hold' rating is expected to remain in place until S&P meets with MIR next month as part of its Australian equities large-cap sector review.