Advance fund ‘on hold’

investment manager

3 July 2008
| By Mike Taylor |

A decision by Advance Funds Management to change the underlying investment manager of its Advance Asian Equities Fund has prompted Standard & Poor’s to place the fund ‘on hold’.

The ratings house said this week that Advance had terminated its investment management agreement with Maple-Brown Abbot and announced that the ceding manager would be Lion Global Investors, one of the largest asset management companies in South-East Asia and part of the Overseas Chinese Bank.

S&P said Advance believed that a local manager was best placed to invest in the region, as Asian markets and companies were heavily influenced by regional factors such as culture, politics and cross-border relations.

“Lion’s value-style investment philosophy is similar to that of Maple-Brown Abbot and uses bottom-up research to identify companies that have strong fundamentals,” S&P fund analyst Justine Gorman said. “It buys these companies when they are trading at a discount to fair value.”

She said that S&P would be reviewing the ‘on hold’ rating once it had reviewed the new manager’s capabilities.

S&P had previously rated the fund four stars.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

5 days 23 hours ago

Interesting. Would be good to know the details of the StrategyOne deal....

1 week 3 days ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

4 weeks 1 day ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

3 weeks 3 days ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

1 week 2 days ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

1 week 1 day ago