Old funds drag down AMP rating
Poor performance by AMP’s older style funds have dragged down the fund man-ager’s Morningstar overall rating to three stars.
Poor performance by AMP’s older style funds have dragged down the fund man-ager’s Morningstar overall rating to three stars.
AMP’s three star rating is the fund manager’s first rating by a research house. The three star rating is below competitors Colonial First State, Perpetual, BT Funds Management and Mercantile Mutual and comes despite achieving four or five star ratings for half of its 198 funds on offer.
In fact, Morningstar says AMP has a higher proportion of funds with three, four or five star ratings than thre three fund managers who have achieved five star man-ager ratings — Colonial First State, Credit Suisse and Perpetual.
Morningstar’s report says AMP’s older style funds are a thorn in the side of the fund manager.
“These relatively few, older, very large and relatively poorly rated AMP funds off-set the very good and excellent quality of most of the other funds,” the report says.
“AMP’s long and dominant history in the Australian funds industry, in particular through its past life insurance emphasis, means AMP carries forward some older style managed funds that for legal and tax reasons are difficult to terminate.”
AMP’s investment team scored above average across nearly all investment sectors, in particular in Australian fixed interest and Australian equities.
Three of AMP’s best five funds (as rated by Morningstar) are balanced funds. The AMP Balanced Growth Fund achieved the highest Morningstar qualitative rating of any multi-sector growth fund researched with a near perfect 9.75.
The AMP Blue Chip fund has the highest Morningstar sector strength rating for any diversified Australian equity fund.
Recommended for you
After seven years at the company, Iress’ chief technology officer for wealth management APAC, Anthony Gerrits, has departed as the firm commences a search process to fill the role.
With advice firms thinking about scaling up in 2025, research has detailed the main avenues financial advisers say they have used for successful recruitment.
The board of Insignia Financial has reached a decision regarding the possible acquisition of the firm by US private equity giant Bain Capital.
Six of the seven listed financial advice licensees have reported positive share price growth in 2024, with AMP and Insignia successfully reversing earlier losses.
