S&P places 'sell' ratings on AXA funds following team departures
Standard & Poor’s Fund Services has placed ‘sell’ ratings on AXA’s Wholesale Australian Equity Growth and Industrials funds following the departure of key portfolio team members.
Portfolio manager Johan Carlberg and three analysts are set to leave the team, which has caused concern at the loss of experience and investment insight — as well as the reduction in the team’s size.
“We consider the loss of these important team members, as well as uncertainty regarding the investment team’s future structure, to be sufficient to warrant ‘sell’ ratings,” S&P Fund Services Nathan Bode stated.
“We held the former Alliance Growth Equities investment team, led by Mr Carlberg, in high regard. The strength of the team, as well as a number of other factors, led us to upgrade the fund to four stars from three stars as part of our recent review of the Australian equities large-cap growth and sector-specific peer groups.”
Bode said the departing team members provided significant research coverage, and while their roles have been absorbed by the global sector head for energy and natural resources, he said concern remains regarding the team’s size and ability to execute its investment strategy.
The funds that have received ‘sell’ ratings are the AXA Wholesale Australian Equity Growth Fund, AXA Generations Alliance Capital Australian Equity Growth Fund and the AXA Wholesale Australian Equity Industrials Fund.
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