S&P to alter ratings process
Research house Standard & Poor’s (S&P) is considering a change to its process of reviewing fund managers, just weeks after its purchase of rival Assirt Research from the St George Bank.
The combined group, which currently rates a fund manager’s entire capabilities at the one time, said in a statement it was considering a move to sector-by-sector reviews.
Head of fund ratings Mark Hoven flagged the change after announcing that the research house’s analysts had been re-organised under sector reporting lines.
Under the changes, Ken Ostergaard, the former head of research at Assirt, will lead the combined group’s research in the boutique fund manager and small caps sectors, while Ramon Eyck will head-up research into Australian equities managers. Analyst Greg Hogan will be responsible for alternative assets and structured products, while Veronica Gullo, Lyn Stanton and Greg Barr will cover the multi-manager, international equities and fixed interest sectors respectively.
S&P ended month’s of speculation in February when it announced its purchase of Assirt from St George.
At the time, the research house indicated that it would review the ratings process used by Assirt.
Hoven said S&P would discuss the possible change to a sector review approach with financial planning dealer groups and fund managers over coming weeks.
The move was designed to speed up the ratings process, he said.
“One of the changes we anticipate is a move toward sector-based reviews, which we believe will reduce the rating turnaround for all participants in the ratings process,” Hoven said.
AUTHOR
George Liondis
Recommended for you
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.
As the government announces a public inquiry into the collapse of Dixon Advisory, risk adviser Richard Silberman has detailed the three areas that typically lead to an AFSL's collapse.
