S&P downgrades 13 strategies in multi-asset sector review
MLC's Horizon and BlackRock Wholesale Balanced Fund have been downgraded in Standard & Poor's (S&P) second release of Multi-Sector Funds for 2011 Review.
As part of the report, 23 investment strategies were rated, with two funds being upgraded, 13 downgraded, and five remaining unchanged since last year.
In relation to MLC's offering, S&P fund analyst Andrew Yap said the downgrade from four to three stars was due to a number of factors, including team changes, lagging risk systems, mixed performance, and a general strengthening among competitor offerings.
In other results, Select's Defensive and Growth funds were upgraded from three to four stars, while Pre Select Balanced Fund's ratings were affirmed, maintaining its three star rating.
S&P stated that BlackRock Balanced Fund and Select's Defensive and Growth funds will each be moved to the multi-asset peer group from early 2012, which will be more representative of their investment mandates. This group has the capabilities in place to permit a more extensive use of alternatives, leverage shorting, derivatives, commodities and private equity, the ratings house added.
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