Wrap providers including Macquarie and BTFG offered the Astarra Strategic Fund, but said the number of investors was small.
A number of platform providers have admitted to putting the Astarra Strategic Fund (ASF) on their investment menu.
Macquarie Group, Westpac and Tower Australia offered the ASF, formerly known as the Alpha Strategic Fund, via their platforms but said the number of investors was small.
"We do not provide data on specific funds accessed via Macquarie Wrap, but can say that the number of investors is small," a Macquarie spokesperson said.
"When the Astarra Strategic Income Fund, previously known as Alpha Strategic Fund - B Class Units, was first added to Macquarie Wrap it had been given a recommended rating from leading external ratings agency Aegis.
"It also met the standard requirements applicable to Macquarie Wrap, which includes demand from users of Macquarie Wrap and being an operational fit for the platform."
Westpac's wealth management arm, BT Financial Group (BTFG), offered the ASF on BT Wrap and BT SuperWrap.
A BTFG spokesperson said investors put only $300,000 into the ASF via BT Wrap. The fund has been closed to new investors.
Westpac also offered margin loans into Alpha Advantage Funds, a series of structured products made by Astarra Asset Management.
It's understood that some of the loans tied to the structured products have been discharged while several loans remain.
Tower's Beacon Investment Wrap Service also offered the ASF but there was only one investor in the fund through the platform, a Tower spokesperson said.
Aegis Equities Research gave the Alpha Strategic Fund, issued by Astarra Capital and managed by Absolute Alpha, a recommended rating in October 2007, Aegis head of investment research John Kessell said.
The rating is the second-highest offered by Aegis. The rating was made based on the Alpha Strategic Fund product disclosure statement and information presented by the fund manager at the time, Kessell said.
Aegis was paid a one-off fee to rate the fund at the particular point in time in October 2007, he said. Aegis does not get appointed to rate fund products on an ongoing or periodic basis, Kessell said.
Absolute Alpha was the former name of Astarra Asset Management. The company is currently under liquidation.
The two non-consecutive alphabetic letters encountered most often last week caused more controversy than the underlying policy they represented, Wouter Klijn writes.... read more »
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