Three INGIM funds ‘on hold’: S&P

Research house Standard & Poor’s(S&P) has placed three ING Investment Management(INGIM) funds ‘on hold’ following the departure of four key staff members from the fund manager’s Australian equities team.

The funds affected are the ING Australian Share Trust, the ING Select Leaders Trust and the ING Blue Chip Imputation Trust.

INGIM announced yesterday the departures of portfolio managers Paul Cuddy and Mark East and analysts Michael Chun and Michael Malseed from the funds’ investment team.

Money Management reported that the fund manager sought to manage the news by making clear that East and Cuddy were part of a 20-strong team and that the company had brought in two highly experienced portfolio managers from its international team — Guy Uding and Tycho van Wijk. However, S&P said the ‘on hold’ rating would remain in place until it met the new team.

“The three-star rating that S&P awarded the manager in 2006 was based in part on Mr Cuddy’s and Mr East’s capabilities and stock picking skills,” the research house said.

“S&P will therefore need to gain comfort in the portfolio manager and analyst changes to be assured of investment process continuity.”