BT Funds Management has suffered a ratings downgrade due to the recent departure of chief investment officer Andre Morony.
Morningstar managing director Graham Rich says Morony’s sudden departure was a major factor in the decision to downgrade the fund manager’s Morningstar rating from four stars to three.
“It is no secret BT have been having a struggle in maintaining their Australian equities performance compared to their competitors,” he says.
“The fact that Andre left tipped the scale in determining the company rating.”
BTFM’s downgrade is one of a number of recent ratings re-evaluations made by Morningstar. Among the raft of rating changes Morningstar has made, the National (NAB) and AMP also found themselves re-rated.
Morningstar has reinstated NAB to a three star rating following a period of suspension due to the takeover of MLC. The National was downgraded in June last year following a major re-rating of fund managers by Morningstar.
“National’s downgrade is due to the degree of trauma associated with MLC,” he says.
In September last year Morningstar temporarily suspended NAB’s ratings pending a possible downgrade.
Rich says many of Nationals funds were not as efficient as the average for their peers, with only 49 per cent of National funds having a risk/return rating of 6.00 or better at 30 November 2000.
Fairing better than NAB was AMP, who were upgraded by Morningstar from a three to four star rating.
“AMPs quantitative ratings are continuing the drive upwards. AMP is a good all around manager,” Rich says.
“Across pretty well every asset class, AMP has improved its performance.”
In April last year, 71 per cent of AMP’s funds recorded a Morningstar Average Risk Rating of six or better out of 10, according to a Morningstar statement.
In September last year this number had risen to 80 per cent and the proportion of AMP funds with consistently above average minimum returns over time remained steady.
“AMP Henderson is one of the companies to watch as a company emerging in the funds management industry,” Rich says.
