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MEDIA RELEASE
SQM Research has downgraded the Macquarie Australian Small Companies Fund ratings
SQM Research has today downgraded the rating of the Macquarie Australian Small Companies Fund, APIR Code MAQ0454AU (“the Fund”) from 4.00 stars to 3.75 stars following material changes to the investment team.
SQM Research has been informed by the Manager – Macquarie Investment Management (MIM) – of significant staff changes within Macquarie Investment Management’s Listed Equities business in Australia.
Patrick Hodgens, Head of Listed Equities for Asia-Pacific and four team members associated with the “fundamental” Australian equities business of MIM have elected to leave the business. This includes Matthew Fist who was a Co-Portfolio Manager for the Fund, as was Mr Hodgens. It is the understanding of SQM Research that Justin Gray will continue in his role as a manager of the Fund.
Macquarie Investment Management is yet to disclose full details of remedial action to be taken as a result of these departures.
The downgrade is an initial step SQM Research has taken in response to this development. We will continue to closely monitor and assess the situation as the Manager establishes and executes its strategy. The focus will be on the experience and quality of new members of the portfolio management team, portfolio structure, fund performance, and on trends in client inflows/outflows.
SQM Research expects that MIM will apply considerable resources and effort into ensuring a suitably qualified and experienced team continues to manage the Fund, whether from external or internal appointments.
Subsequent to this downgrade, the ongoing rating status of the Fund will be determined by the outcomes of the monitoring process.
For further information:
Louis Christopher
Managing Director
SQM Research
Tel: 02 9220 4666
Email: louis@sqmresearch.com.au
Rob da Silva
Head of Research
SQM Research
Tel: 02 9220 4606
Email: rob@sqmresearch.com.au
You can subscribe to SQM Research Ratings via the SQM Ratings website.
About SQM Research
SQM Research is an independent property advisory, ratings and forecasting research house which specialises in providing accurate property related advice, research and data to financial institutions, property developers and real estate investors. 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 – Good. Consider for APL inclusion.
3.5 stars – Average. 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, and investors should avoid or redeem units in the fund.
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