S&P leaves MLC rating unchanged after announcement
MLC’s announcement that it will terminate a real estate mandate managed by Challenger and increase its maximum global real estate investment trust (GREIT) holding will not result in a change of rating from Standard and Poor’s Fund Services.
MLC’s Australian property securities funds were unaffected by the announcement that a mandate for 25 per cent of its Australian real estate investment trust strategy had been reallocated to Resolution Capital, increasing Resolution’s mandate to 100 per cent of that strategy.
“Resolution Capital has been one of the incumbent managers for that fund for a long time, they’ve been managing 75 per cent of the strategy anyway, so it’s not that material a change, it’s not impacting on the rating in our opinion,” said Peter Ward from S&P.
“We have a strong view of Resolution Capital and still have a strong view of MLC’s capability for multi management.”
An increase in the strategy’s maximum ownership of GREIT from 10 per cent to 15 per cent is consistent with what Resolution were already doing within that capability and is a reflection of Resolution’s increased responsibility for the strategy, he said.
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