No uniform approach to address liquidity
Different mortgage fund managers use different tactics to address liquidity issues, and a uniform approach has not been seen yet, according to Standard & Poor’s Fund Services (S&P) analyst Peter Ward.
Ward said S&P considered this to be a reflection of the different underlying investor base, underlying investments, and different managers’ mortgage fund sector outlook.
“Three funds, managed by Australian Unity, Challenger and OnePath have changed their redemption mechanisms. Each solution has provided improved certainty, but outcomes differ,” Ward said.
“The changes have contributed to our decisions to upgrade the Australian Unity fund to three stars from two stars and to resolve the long-standing ‘on-hold’ ratings for Challenger and OnePath funds,” Ward added.
His comments followed the release of S&P Australian Fixed Interest – Mortgages sector review as part of which the researcher rated nine mortgage fund products.
The funds included six conventional mortgage funds, two hybrid funds and one high-yield mortgage fund in the rated peer group.
Recommended for you
AFCA has confirmed United Global Capital’s membership of the body will not be extended to accept further complaints, avoiding a repeat of the Dixon Advisory scenario.
Three of Australia’s largest financial advice groups have shared their thoughts with Money Management on whether they would include crypto on their approved product lists.
Shadow treasurer Angus Taylor has vowed to introduce a bill to legislate a raft of financial services reforms if the Coalition is elected.
Money Management examines the share price of financial advice licensees over one year to 31 March, with M&A actions in the final quarter having a positive effect for two licensees.
