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SQM Research Media Release
SQM Research has downgraded its rating on the AMP Capital Global Property Securities Fund
SQM Research has today downgraded the AMP Capital Global Property Securities Fund from a rating of 4.25 stars to 4.0 stars. This rating downgrade is a direct result of the announcement of the departure of Deputy Head of Global Listed Real Estate/ Portfolio Manager – Tom Walker.
The departure of Mr Walker shadows from the earlier departures of Hugo Machin in early April 2014 and Nikita Johal in August 2013. All departures were responsible for fundamental research in Europe, with no investment staff now intact in London following these departures. Succession planning is in place to ensure continued efficiencies’ in the process. In the short-term, the AMP Capital Global Property Securities Fund will be leveraging of their secondary coverage capability with Head of Asian Listed Real Estate – Charles Wong, Chicago-based Portfolio Manager – Dominic Cappellania and Australia-based Portfolio Manager – Ryan Watson, spending time in London to assist the Fund in maintaining its European coverage.
AMP Capital has commenced its global external and internal recruitment process. Head of Fundamental Equities – Ella Brown and Head of Global Listed Real Estate – Matthew Hoult will be based in the London office while leading the recruitment efforts.
SQM Research is concerned that the departures are a result of budget cuts incorporated throughout the broader AMP Capital organisation, however SQM Research is currently in the process of reviewing the departures and the Fund as part of its 2014 Global Property Securities Review. The Fund’s final report and rating will be released in June 2014.
While the staff departures over the last year have been of concern to SQM Research, the current team and existing capabilities in place are still highly regarded by SQM Research.
For further information:
Louis Christopher
Managing Director
SQM Research
Tel: (02) 9220 4666
Email: louis@sqmresearch.com.au
Leanne Truong
Senior Investment Analyst
Tel: (02) 9220 4602
Email: leanne@sqmresearch.com.au
Aakriti Chona
Investment Analyst
Tel: (02) 9220 4601
Email: aakriti@sqmresearch.com.au
to view the last full ratings report on this fund, please click here.
About SQM Research
SQM Research is an investment research firm that undertakes research on investment products exclusively for its wholesale clients, utilising proprietary review and star rating system. The SQM Research star rating system is of a general nature and does not take into account the particular circumstances or needs of any specific person. The rating may be subject to change at any time. Only licensed financial advisers may use the SQM Research star rating system in determining whether an investment is appropriate to a person’s particular circumstances or needs. You should read the product disclosure statement and consult alicensed financial adviser before making an investment decision in relation to this investmentproduct. SQM Research receives a fee from the Fund Manager for the research and rating ofthe managed investment scheme.
For more information please visit www.sqmresearch.com.au
Research Methodology
In general, the assessment approach adopted by SQM Research incorporates a combination of qualitative and quantitative research techniques to assess property investment products,
Information generated is passed through the SQM Research assessment model at the completion of the assessment process. The assessment model generates a product score,
which correlates to a specific star rating (out of a maximum of five stars). Each star rating covers a scoring range, allowing products to be ranked within quarter star increments.
Following are descriptions for each of the star ratings, which have been developed as a guide for dealer group research teams and investment committees:
4.5 stars and above – Outstanding. Highly suitable for inclusion on APLs.
4 stars to 4.25 stars – Superior. Suitable for inclusion on most APLs.
3.75 stars – Favourable. Consider for APL inclusion.
3.5 stars – Acceptable. Consider for APL inclusion, subject to advice restrictions.
3.25 stars – Caution required. Not suitable for most APLs.
3 stars – Strong caution required. Not suitable for most APLs.
Below 3 stars – Avoid or redeem. Not suitable for APL inclusion.
Hold – The rating is currently suspended until SQM Research receives further information. A rating is typically put on hold for a period of 2 days to 4 weeks.
Withdrawn – The rating is no longer applicable. Significant issues have arisen since the last report was issued, and investors should avoid or redeem units in the fund.
Not rated – the fund has not been rated by SQM.
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