Morningstar gives thumbs up to Fortis
Morningstar has endorsed the Australian equities offerings of Fortis Investment Management Australia (Fortis) following its transition from the ABN Amro Asset Management banner earlier this year and the part acquisition of Fortis Bank Belgium by BNP Paribas.
Morningstar said while the name may have changed, “investors can be assured that the investment approach hasn’t”.
Morningstar said Fortis remains among its “top picks” for a core Australian equities portfolio.
“Changes in ownership often bring uncertainty, but this is not the case here, where the move has actually been a positive catalyst,” the Morningstar report said.
“Under the new ownership structure, the Australian equities team led by George Clapham has acquired a majority interest in their business, helping to reduce the risk of key team members leaving the shop.”
Morningstar highlighted Fortis’ “proven investment team and robust process”.
“George Clapham is ably-supported by fellow portfolio managers Mark Nathan and Neil Boyd-Clark, and this trio has been at the firm for more than eight years and knows the process intimately,” the researcher said.
“Fortis’ growth style means historically, the strategy has fared less well in down months, although it has still fared better than most growth peers.”
The researcher said the manager’s growth style could become more relevant if the uncertainty gripping the share market takes hold for an extended period. Morningstar said the Fortis Investments Australian Equity Fund “hit a few bumps” during the 2007-08 financial year, finishing in the bottom quartile.
“While disappointing, investors shouldn’t lose too much sleep about this, as the strategy continues to prove its worth over longer periods,” the report said.
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