Zurich and Constellation go separate ways
Zurich Financial Services has exited its agreement with Constellation Capital Management, leaving the latter on the hunt for a new strategic shareholder while Zurich’s Australian Value Share Trust is put on hold as a result.
Zurich has ceased its agreement with Constellation, which allowed it exclusive distribution rights in the retail and mezzanine space for some of Constellation’s investment management services.
Qantas Superannuation is also planning to exit its shareholding in Constellation, and is assisting the group to identity and attract a new strategic shareholder.
Standard & Poor’s has now placed the Zurich Investments Australian Value Share Fund on hold from its previous rating of three stars.
Zurich has replaced Constellation with Above the Index Asset Management (ATI) as investment manager for the fund.
ATI was established in 2004 and is partly owned by Ascalon Capital Managers, which is partly owned by St George Bank and Kaplan Equity.
Zurich said that the investment objectives and fees of the fund will remain unchanged and that the transition of the portfolio is expected to be completed by the end of the month.
S&P fund analyst James Gunn said the research house would review the ‘on hold’ rating after assessing the investment capability of ATI.
Recommended for you
A strong demand for core fixed income solutions has seen the Betashares Australian Composite Bond ETF surpass $1 billion in funds under management, driven by both advisers and investors.
As the end of the year approaches, two listed advice licensees have seen significant year-on-year improvement in their share price with only one firm reporting a loss since the start of 2025.
Having departed Magellan after more than 18 years, its former head of investment Gerald Stack has been appointed as chief executive of MFF Group.
With scalability becoming increasingly important for advice firms, a specialist consultant says organisational structure and strategic planning can be the biggest hurdles for those chasing growth.
