S&P rates Macquarie funds
Ratings house Standard & Poor's Fund Services has this week handed the Macquarie High Conviction Fund four stars, with the Macquarie Small Companies Fund gaining a two star rating.
S&P announced that the rating action had followed on from team departures that occurred in December 2011, which most directly affected the Small Companies Fund.
The ratings house said it had placed a 'sell' rating on the Small Companies Fund in December, following the departure of small-cap portfolio manager Neil Carter, and analysts Jim Copland and Matt Griffin who were regarded as integral to the small-cap strategy.
It said that, at the same time, it had placed the High Conviction Fund 'on hold' in order to assess Macquarie's response to the departures, and their impact on the broader team.
Commenting on this week's ratings, S&P analyst, Tom Mills said the ratings house believed Macquarie has taken appropriate action to retain and incentivise the fundamental equity team, an 'all-cap' team researching large and small Australian companies, and supporting both products.
It said Macquarie had quickly replaced Copland with an experienced resources analyst, Katherine Taylor.
"We consider the team to be of good quality. The difference in ratings primarily reflects the contrast in portfolio management arrangements between the two funds," the S&P analysis said.
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.
