S&P withdraws ratings on terminated CFS funds
Ratings house Standard & Poor’s (S&P) has withdrawn its ratings on Colonial First State’s Property Securities Opportunities Funds following notification they are to be terminated.
The ratings house said it had placed the funds 'on hold' on April 20 following the unexpected departure of the global property securities portfolio manager, John Snowden.
S&P noted that fund investors would be given an opportunity to switch their investments to Colonial First State’s property securities option, free of any buy/sell margin or switching costs.
It said unit holders who chose not to switch their investments were expected to have their capital returned to them in June.
S&P fund services analyst Nathan Bode said challenging financial markets had led certain managers to rationalise some product offerings that lacked sufficient scale.
“The manager has taken the view that demand will continue to be low for property securities funds with a small cap bias, and has therefore decided to terminate the strategy and distribute all proceeds,” he said.
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Mike Taylor
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