Now that the GFC dirge has stopped, Standard & Poor’s has debuted its inaugural Musical Chairs report on fund manager movements for the first quarter of 2010.
Three funds were caught in the ‘you put the hold on, you take the hold off’ hokey-pokey, with a fourth still in the ‘on-hold’ part.
Due to personnel and process changes, S&P put Advance’s Concentrated Australian Shares Funds on hold on January 11 and it was still in that space, said Leanne Milton (pictured), S&P’s head of fund research. “We have a few issues with the fund, and it’s being rated at present, so it wouldn’t be appropriate to comment,” she said.
The three funds put on hold – due to key-person departures – and then reinstated were: 452 Capital Australian Share Funds, Souls Funds Management (re-badged Celeste), and Resolution Capital’s Global Property Securities Fund.
Milton said that S&P’s had launched its Musical Chairs’ report “to give clients a better view of what’s happening, and to give ourselves a better idea of particular trends”.
In this year’s first quarter, the portfolio managers and other key personnel getting off the fundie-go-round were from mainstream fund managers, with 73 per cent of those not yet having found or announced replaxcements.
In contrast to the big players, boutiques fared well in Q1 which was not surprising, Milton said, “as boutiques tend to be favoured places of employment in rising markets as investment professionals seek to lock in equity participation deals superior to those in mainstream firms”.
The departures were – not surprisingly – concentrated in domestic equity (40 per cent) and global equity teams (40 per cent), with the rest in global property, alternatives, and fixed-interest asset classes.