MIR team changes see fund 'on hold'
Substantial changes to the investment team and processes behind the Advance Concentrated Australian Shares Fund has seen it placed ‘on hold’ by ratings house Standard & Poor’s (S&P).
S&P announced that it had placed the fund 'on hold' after being advised about the changes by the fund’s investment manager, MIR Investment Management.
It said following a period of disappointing performance, MIR had reviewed its investment process and had decided to restructure its qualitative research process.
S&P said the changes included a smaller Australian qualitative analyst team, resulting in the departure of two of its members, including the team’s former head, Derek Ovington.
It said the Australian qualitative team would now consist of Phil Hudak and a second analyst who is yet to be recruited, with MIR’s Singapore-based Asia qualitative team continuing to provide coverage of some Australian stocks.
S&P said while MIR believed the restructure would lead to an improved investment process, the ratings house held concerns over the impact of the changes, including the effect on team continuity and stability.
The 'on hold' rating is expected to remain in place until S&P meets with MIR next month as part of its Australian equities large-cap sector review.
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.
