Advance Asset Management has terminated any new flows to the Boston Company, one of four managers underlying the $1.2 billion Advance International Shares Multi-Blend Fund, following the loss of six research analysts at the funds manager.

The 35 per cent allocation, which Boston Company was allotted, will be redirected to the three other managers – Alliance, Mellon and Tradewinds – in a move general manager of wealth management at St. George, Geoff Lloyd, described as “an abundance of caution”. Research house Standards and Poor has placed the three-star rated fund on hold following the departure of the analysts, who were part of the non-US portfolio management team. Lloyd said there had been no activity from financial planners looking to reduce their exposure to the fund, or the two other Advance funds which have the Boston Company as their underlying manager, the Advance International Sharemarket Fund, and the Advance International Core Fund. He said he was comfortable that the fund would continue to be run effectively, as the lead portfolio manager, Bill Patzer, would continue to preside over the portfolio, and the core investment strategies and systems would remain in place. This sort of thing happens in investment management, and it’s important to view it in context, Lloyd said. “The Boston Company has immediately assigned their larger research team consisting of 22 analysts that support the other strategies within the firm. They will draw on a team of 115 research and portfolio management professionals across the different teams in the firm,” he said. “They have kept us fully informed and we will be reviewing them over the next quarter.”

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