National fund managers feel sting
The National’s funds management arms have felt the analytical sting of Morning-star with the ratings of County Investment Management being dropped to two stars and the National branded funds management being temporarily suspended.
The National’s funds management arms have felt the analytical sting of Morning-star with the ratings of County Investment Management being dropped to two stars and the National branded funds management being temporarily suspended.
County’s rating had been suspended and has been reduced to the two star rating, or poor standing, due to changes at the group.
Morningstar chief executive Graham Rich says Morningstar found that many of County’s funds were in a state of flux and turmoil following the announcement of a sale of the group by National two months ago.
“Unfortunately for County, there were three issues that hindered its monthly re-evaluation. The change within the NAB funds generally affected County, the over-exposure to the Loy Yang Indexed Annuity, and its sale,” Rich says.
“All this information moved County to a two star rating with many of its funds downgraded to a one star rating.”
County chairman Charles Macek says the downgrading of the group has been a bitter disappointment, and a result he does not agree with at all.
Macek says it is hard to believe the group’s ratings has decreased to its lower rat-ings, after its June figures found 19 of the company’s products were rated as four and five stars.
Morningstar says further changes in NAB and its adjoining groups including NAM didn’t give a stable enough indication of the group’s star rating, causing a tempo-rarily suspension of the group’s rating.
“The ratings normally take three to four weeks. We are sufficiently satisfied with the extent of flux within the NAB group and a downgrade is highly likely,” he says.
Unlike other research groups, Rich says Morningstar does not place its evaluating funds on hold or cease the recommendation of the pending funds. He says labelling a fund as pending a rating enables more time for information to be gathered and a more current and accurate evaluation to be given.
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