Mixed ratings challenge AMPCI to build reputation
AMP Capital Investors (AMPCI) has received mixed results from its latest Assirt Research review, with the researcher concluding the manager still faces an uphill battle to rebuild its brand reputation and grow its popularity among independent financial advisors.
Downgrades for AMPCI's value and active quantitative processes in Australian shares have been countered by an upgrade for its global listed property capability in the Assirt review released today.
While AMPCI's Australian Shares - Value Plus process is considered "robust" by Assirt, the researcher points out that two team members recently left and another only joined last August, and as such the team is "understaffed and its cohesion and dynamics relatively unproven".
Conversely, the team behind the Australian Shares - Active Quant fund is regarded highly by the researcher, but it casts doubt on AMPCI's ability to resource the team compared with large global specialists in quantitative investment management.
Both funds were downgraded from 'Strong' to 'Competent'.
There was better news for AMPCI's global listed property division, improving from 'Competent' to 'Strong' on the back of Assirt's confidence with its regional stock picking structure, and regard for its US outsourcing partner, KG Redding & Associates.
Meanwhile, a 'Strong' rating was maintained for the Australian Shares - Capital and Australian Shares - Enhanced Indexed processes.
Assirt applauded John Whiteman's recent promotion to head of the Capital team, saying his eradication of small bets from the portfolio should improve its performance in the long term.
AMPCI's Australian listed property trust fund maintained a 'Competent' rating, but Assirt warned its large assets under management coupled with a rapidly shrinking number of listed property trusts spelled trouble for its ability to add value.
“Whilst we believe AMPCI has strong investment capability in a number of areas, it still faces a number of key challenges; the most significant of being the rebuilding of its brand reputation and growing its assets under management in the independent financial advisor channel,” Assirt said.
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