Equity Trustees active switch prompts ‘hold’ ratings
A decision by fund incubator Equity Trustees to take a more active management approach has prompted research house Standard and Poor’s (S&P) to give four of its funds an “on hold” rating.
The EQT Tax Enhanced Income Fund and its wholesale counterpart has been changed from index concentrated products managed by State Street Global Investors to active multi-manager offerings.
The retail and wholesale versions of the EQT Enhanced Property Index Fund have been changed to a fully active mandate managed by boutique fund manager SG Hiscock.
The names of the funds are also expected to change.
The Tax Enhanced Income Fund has been taken off a three star rating, which means it was expected to perform in line with its peers, while the Enhanced Property Index Fund was taken off a four star rating, which means its was expected to outperform its peers.
“Equity Trustees believes the funds, using an index-enhanced approach, have not attracted investors’ interest and, as such, will move to a more active approach. With such significant changes to the products, the funds have been placed on hold pending a full review of the new offerings, which will occur over the next couple of weeks,” said S&P fund analyst Greg Barr.
In other news, just weeks after appointing a new chief investment officer, AMP Capital Investors (AMPCI) has reorganised its property funds management team.
The staff shuffle was carried out to free someone up to steer a new property fund it intends to launch in the new year.
The current manager of AMPCI’s $4.2 billion flagship Australian Core Property Portfolio, Tim Stringer, will be promoted to an as yet unnamed role to steer the new fund.
AMPCI was keen to keep details of the offering under wraps, saying it was “very much still a work in progress”.
Stringer will be replaced by current fund manager of the Property Income Fund, Louise Joslin, who in turn will be replaced by a fund manager within AMPCI’s private clients division, Michael Fisk.
John Dynon will replace Fisk.
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.
