About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   depositrates.co.nz  |   landlords.co.nz
Last Article Uploaded: Wednesday, June 29th, 10:08PM
rss
Latest Headlines

Poor Australian share performance spurs downgrade

BT Australia's star rating downgrade has little impact in New Zealand.

Friday, January 12th 2001, 7:13AM

by Philip Macalister

BT Funds Management in New Zealand says it's disappointed that research house Morningstar has downgraded BT Australia from a four star manager to a three star one.

"We are not comfortable with it," BT NZ vice president Mike Newton says. "We don't like it at all."

Newton says the downgrade is primarily due to an under-performance in the Australian equities sector.

He says the portfolio managers had taken a long-term view on the market and have been short on banking stocks. However, the fund has significantly underperformed the indices as banking stocks have been strong performers in recent years.

The manager downgrade illustrates the importance of performance in the rating process and the size of the BT's Australian share portfolio.

While Morningstar's Star Ratings are based on both quantitative and qualitative factors, past performance is important. When the rating is calculated the performance of all of a manager's funds are added up together and put into the rating on fund weighted basis.

Because BT's Australian share fund exposure is so big it has influenced the outcome of the manager rating.

The impact of big funds on a manager's rating was highlighted in November when Morningstar decided to move Macquarie to a not-yet-rated status. The main reason behind this is that it had just one fund, its Gilt-Edged Access cash account, and the performance of this significantly impacted the ratings process.

The BT Australia downgrade doesn't affect BTNZ. However, a reasonable amount of money is directly invested into BT Australia funds, and some of the New Zealand funds invest into BT Australia funds.

"The impact on us is not great," Newton says.

BTNZ would be "very unhappy" if Morningstar decided to downgrade its manager rating.

"(Australian shares) is a small part of our business," Newton says as only a maximum of 10% of the New Zealand equity fund can be invested into Australian shares.

You can read Philip's blog here: http://www.goodreturns.co.nz/blog/

« The Crossings falls short but proceedsGet your tax questions answered online »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
  • FMA says commission drives churn
    “Until the FMA sorts out the 1500 Kiwisavers a month getting churned to the banks they have no credibility at all lets be...”
    11 hours ago by Steven Popodopolus
  • FMA says commission drives churn
    “I agree with Brent Sheather. The bank’s involvement in Kiwisaver is (at best) against the interests of consumers, and (most...”
    11 hours ago by Pragmatic
  • FMA says commission drives churn
    “I agree with Brent Sheather on his points. While I'm disgusted by the fact that there are some 'advisers' out there behaving...”
    11 hours ago by AFA Muggins
  • FMA says commission drives churn
    “I know nothing about insurance or commission but the FMA frequently seem to find reasons why they should not look closely...”
    13 hours ago by Brent Sheather
  • Associations expecting 'yes' vote
    “Hi Fred We might as well continue this in the full glare of the public. It might be a clarifying exchange for all. If it's...”
    14 hours ago by Murray Weatherston
Subscribe Now

Weekly Wrap

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 5.64 4.75 4.85 4.99
ANZ Special - 4.25 4.35 -
ASB Bank ▲5.65 4.69 4.75 4.89
ASB Bank Special - 4.25 4.19 4.39
BankDirect ▲5.65 4.69 4.75 4.89
BankDirect Special - 4.25 4.19 4.39
BNZ - Mortgage One 6.30 - - -
BNZ - Rapid Repay 5.75 - - -
BNZ - Special - 4.25 4.19 ▲4.49
BNZ - Std, FlyBuys 5.69 4.85 4.89 4.99
BNZ - TotalMoney 5.69 - - -
Lender Flt 1yr 2yr 3yr
Credit Union Auckland 6.70 - - -
Credit Union Baywide 5.95 4.99 4.99 -
Credit Union North 6.45 - - -
Credit Union South 6.45 - - -
Finance Direct 6.10 6.45 6.69 7.10
First Credit Union 5.85 - - -
Heartland 6.70 7.00 7.25 7.85
Heretaunga Building Society 5.60 4.85 4.90 -
Housing NZ Corp 5.55 4.69 4.85 4.99
HSBC Premier 5.75 4.19 4.19 4.49
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 5.60 4.39 4.69 4.99
Kiwibank 5.45 4.70 4.75 4.49
Kiwibank - Capped - - - -
Kiwibank - Offset 5.50 - - -
Kiwibank Special - 4.29 4.15 -
Liberty - - - -
Napier Building Society 6.50 5.80 6.70 -
Nelson Building Society 6.10 4.85 4.99 -
NZ Home Loans 5.85 4.69 4.75 4.49
NZ Home Loans - Specials - - - -
Lender Flt 1yr 2yr 3yr
NZ Home Loans - Specials - 4.19 ▲4.19 4.39
Perpetual Trust 7.70 - - -
Resimac 5.34 4.95 4.99 5.05
SBS Bank 5.59 4.75 4.89 4.99
SBS Bank Special - 4.10 4.19 4.65
Sovereign 5.65 4.69 4.75 4.89
Sovereign Special - 4.25 4.19 4.39
The Co-operative Bank 5.45 4.25 4.29 4.49
TSB Bank 5.54 4.75 4.75 4.99
TSB Special - 4.25 4.19 4.59
Wairarapa Building Society 6.20 5.75 5.95 -
Lender Flt 1yr 2yr 3yr
Westpac 5.75 4.79 4.85 4.99
Westpac - Capped rates - 5.15 5.25 -
Westpac - Offset 5.75 - - -
Westpac Special - 4.25 4.29 4.49
Median 5.75 4.69 4.75 4.89

Last updated: 29 June 2016 5:00am

News Quiz

The maximum remuneration model for Australian life insurance advisers is to be set at what?

Upfront 40% + trail 20%

Upfront 50% + trail 10%

Upfront 50% + trail 20%

Upfront 60% + trail 10%

Upfront 60% + trail 20%

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com