S&P has downgraded two 452 Capital funds after its management team announced that it would resign in due course.
Standard & Poor's (S&P) Fund Services has changed its ratings to 'sell' on two 452 Capital-managed large-cap Australian-equity strategies distributed by Colonial First State (CFS).
The ratings house has also put the CFS FirstChoice Wholesale Boutique Australian Share strategies 'on hold'.
S&P said the new ratings reflected significant issues that had arisen and which had the potential to adversely affect the investment capability of the two funds and investment strategies.
The change in ratings comes on the back of an announcement from Colonial First State that it had received a letter from the board of 452 Capital advising that its management team intended on resigning from the business after a period of time yet to be determined.
The 452 Capital management team includes joint investment directors, Suellen Morgan and Mary Feros, the portfolio managers for the funds, and chief executive Lyndsey Hancock.
"We consider the significance of these personnel developments and the uncertainty regarding the future of 452 Capital to be sufficient to warrant 'sell' ratings," S&P Fund Services analyst James Gunn said.
"We will continue to monitor the situation and provide further information as it becomes available."
Earlier this week, 452 Capital said in a statement that the board was holding discussions with management and major shareholders about options regarding staffing and the future of 452 Capital, and that it would keep all clients appropriately informed of any new developments.
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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