Fifty seven funds placed ‘on hold’
Major ratings house Standard & Poor’s Fund Services has placed a total of 57 funds from 25 managers ‘on hold’ in the wake of the Australian Securities and Investments Commission and other regulators moving to ban short selling.
The ratings house said that the affected funds had been able to use short selling for both alpha generation and defensive hedging purposes and that, additionally, a number of multi-manager products had allocations to those types of funds and strategies that incorporated short selling.
It said that all the affected funds were contained within five peer groups of the alternative strategies sector.
Standard & Poor’s said the ‘on hold’ rating would be reviewed on a case-by-case basis with each manager as further information emerged.
AUTHOR
Mike Taylor
Recommended for you
Sequoia Financial Group has announced it is selling off its Informed Investor subsidiary which it acquired in April 2022.
Wealth Data has examined which advice business model has seen the most growth since the start of the year including those that offer holistic advice.
Research conducted by Elixir Consulting and Lonsec has quantified the efficiency gains of using managed accounts in financial advice practices in hours per week saved.
With only one-quarter of advice practices actively seeking feedback from clients, the Financial Advice Association Australia has emphasised why this is a critical tool for client retention.
