Mass inflows for Equity Trustees despite ‘hold’ ratings
Boutique fund incubator Equity Trustees has made an exceptional start to the 2005-06 financial year, having posted a 190 per cent increase in net fund inflows for the half year to December.
The Melbourne-based company, which has distribution partnerships with Australian boutique fund managers MIR and HG Hiscock and international fixed interest manager Pimco, recorded fund inflows of $155 million for the half year, up from $53 million for the same period in the prior year.
The inflows have increased the group’s total funds under management by over 10 per cent to around $1.182 billion.
Despite recent remarks by market commentators such as AMP chief economist Shane Oliver that the Australian share market was still good value compared to international markets, Equity Trustees said the inflows were mainly directed at its international equities and alternative investment offerings.
“Some of the strongest flows that we have been seeing are for funds such as the EQT Intrinsic Value International Sharemarkets Fund and the EQT Grange High Income Fund. We believe that this is a reflection of the market keenly seeking value and diversifying into alternatives to domestic equities,” managing director Peter Williams said.
Equity Trustees is still in the process of conducting a major overhaul of four of its other funds — EQT Tax Enhanced Income Fund, EQT Enhanced Property Index Fund and their two wholesale counterparts — to which it intends to apply an active management approach.
The overhaul, which was announced last November, resulted in all four funds being placed ‘on hold’ by research house Standard & Poor’s.
The funds will remain ‘on hold’ until adjustments to the funds are completed in around three months time.
All four funds will remain closed to new inflows until the overhaul is completed.
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