Old funds drag down AMP rating
Poor performance by AMP’s older style funds have dragged down the fund man-ager’s Morningstar overall rating to three stars.
Poor performance by AMP’s older style funds have dragged down the fund man-ager’s Morningstar overall rating to three stars.
AMP’s three star rating is the fund manager’s first rating by a research house. The three star rating is below competitors Colonial First State, Perpetual, BT Funds Management and Mercantile Mutual and comes despite achieving four or five star ratings for half of its 198 funds on offer.
In fact, Morningstar says AMP has a higher proportion of funds with three, four or five star ratings than thre three fund managers who have achieved five star man-ager ratings — Colonial First State, Credit Suisse and Perpetual.
Morningstar’s report says AMP’s older style funds are a thorn in the side of the fund manager.
“These relatively few, older, very large and relatively poorly rated AMP funds off-set the very good and excellent quality of most of the other funds,” the report says.
“AMP’s long and dominant history in the Australian funds industry, in particular through its past life insurance emphasis, means AMP carries forward some older style managed funds that for legal and tax reasons are difficult to terminate.”
AMP’s investment team scored above average across nearly all investment sectors, in particular in Australian fixed interest and Australian equities.
Three of AMP’s best five funds (as rated by Morningstar) are balanced funds. The AMP Balanced Growth Fund achieved the highest Morningstar qualitative rating of any multi-sector growth fund researched with a near perfect 9.75.
The AMP Blue Chip fund has the highest Morningstar sector strength rating for any diversified Australian equity fund.
Recommended for you
With the final tally for FY25 now confirmed, how many advisers left during the financial year and how does it compare to the previous year?
HUB24 has appointed Matt Willis from Vanguard as an executive general manager of platform growth to strengthen the platform’s relationships with industry stakeholders.
Investment manager Drummond Capital Partners has announced a raft of adviser-focused updates, including a practice growth division, relaunched manager research capabilities, and a passive model portfolio suite.
When it comes to M&A activity, the share of financial buyers such as private equity firms in Australia fell from 67 per cent to 12 per cent in the last financial year.
