Another researcher suspends HSBC ratings
Lonsec has become the second research house to suspend ratings on most HSBC Asset Management Australia (HSBCAMA) funds, following yesterday’s confirmation of its purchase by Challenger Financial Services.
Lonsec’s imposition of a blanket ‘fund watch’ rating on all HSBCAMA products mirrors Standard & Poor’s ‘on hold’ ratings of yesterday. However unlike S&P, Lonsec has not spared the Hong Kong-managed Chinese equity fund, which Challenger will continue to use along with HSBCAMA’s Asian equity fund as a springboard into international equities.
Lonsec said Challenger’s main motivation for the acquisition was picking up a listed property trust capability, but pointed out that HSBCAMA was near capacity in the asset class, reflecting concerns expressed to Money Management yesterday by InvestorWeb analyst Rodney Sebire.
Challenger’s only growth prospect in property was through the hybrid HSBC Strategic Property Trust, Lonsec said, but said the direct property input to the product was uncertain given its outsourcing contract with well-regarded Fortius Funds Management had just eight months to run.
One former HSBCAMA staffer said yesterday that Fortius boss Ray Sproats was “extremely loyal” to his outsource partner, and the relationship would probably not continue long term.
Lonsec was pleased that HSBCAMA’s property securities managers, John White and John Longo, had confirmed they would transfer to Challenger.
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
