Standard & Poor’s (S&P) has put the Advance Concentrated Australian Shares Fund on hold after the fund’s underlying manager, MIR Investment Management, restructured its team and process.
“Following a period of disappointing performance, MIR has reviewed its investment process and has decided to restructure its qualitative research approach,” S&P said.
“Changes include a smaller Australian qualitative analyst team, resulting in the departure of two of its members including Derek Ovington, the team’s former head.”
MIR’s Australian qualitative team will consist of Phil Hudak and a second analyst who is yet to be recruited, S&P said.
The investment manager’s Singapore-based Asia qualitative team will continue to provide coverage of some Australian stocks.
“Qualitative team head Kenny Tjan, based in Singapore, is responsible for oversight of all the Australian qualitative decisions,” S&P said.
“MIR believes that this restructure will lead to an improved investment process, however S&P has some concerns over the impact of these changes, including the effect on team continuity and stability.”
S&P said it would meet MIR in February 2010 as part of its Australian equities large-cap sector review, when a thorough evaluation of the investment capability and the restructured qualitative investment approach will be undertaken.
MIR senior portfolio specialist Steve Gamerov confirmed yesterday that there had been some changes to the firm’s team.
“My understanding is that S&P have put the fund on hold till they have undertaken and completed their review in early February and there have been some changes to the team,” he said.
MIR had approximately $4 billion in assets under management as at 30 June 2009.
