More fund managers moving to boutiques

Standard and Poor’s (S&P) research has identified a trend of fund managers establishing or joining boutiques during 2010.

The majority of S&P ‘on hold’ ratings for retail managed funds were a result of key personnel departures or investment team changes, according to S&P head of fund research Leanne Milton (pictured).

In its fund rating trends half yearly report for the second half of 2010, across the full year S&P placed 62 fund ‘on hold’ – 82 per cent of which were due to personnel departments and investment team changes.

The report also found that of the 545 rating actions taken by S&P in 2010, 56 per cent were affirmations and upgrades. A total of 40 were downgraded and 49 ratings were withdrawn.

S&P noted that funds from AMP, PM Capital, Colonial First State (CFS) and OnePath were among the ‘fallen angels’ whose ratings were at two stars or lower in the second half of 2010, while two funds from CFS and Aberdeen climbed into the three-star and higher categories.