About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   depositrates.co.nz  |   landlords.co.nz
Last Article Uploaded: Saturday, January 31st, 3:35PM
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
  • DIMS conditions clarified
    “What am I missing? I agree with MPT Heretic's questioning of the importance of NTA when the client or the custodian holds...”
    2 days ago by Murray Weatherston
  • DIMS conditions clarified
    “It is the final paragraph from MPT Heretic's response that caught my attention: Perhaps it is time for the playing field...”
    2 days ago by Pragmatic
  • DIMS conditions clarified
    “Well Minister Goldsmith does not have to look far to find unnecessary costs being piled onto adviser businesses and ultimately...”
    2 days ago by MPT Heretic
  • Demand for simpler trauma policies
    “Maybe Milton and the other Head Honchos should maybe suck the Sav a bit and dial down their profit margins eh! And dont give...”
    4 days ago by billy the broker
  • Demand for simpler trauma policies
    “The Lifecare product that Fidelity offer is a good way around the problem. I think a lot of people do not understand it. Appreciate...”
    10 days ago by Wall
Subscribe Now

Weekly Wrap

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AMP Home Loans 7.24 5.69 6.19 6.55
AMP Home Loans $200k+ 7.14 5.59 6.09 6.45
AMP Home Loans LVR <80% - - 5.75 6.09
ANZ 6.74 ▼5.95 6.09 6.39
ANZ Special - ▼5.45 5.55 5.99
ASB Bank 6.75 5.99 6.09 6.39
ASB Bank Special - 5.59 5.55 5.59
BankDirect 6.75 5.99 6.09 6.39
BankDirect Special - 5.59 5.55 5.59
BNZ - Classic - 5.69 5.75 5.59
BNZ - GlobalPlus 6.74 5.89 6.19 6.29
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 7.15 - - -
BNZ - Rapid Repay 6.74 - - -
BNZ - Std, FlyBuys 6.74 5.89 6.19 6.29
BNZ - TotalMoney 6.74 - - -
Credit Union Auckland 6.70 - - -
Credit Union Baywide 6.45 ▼5.95 ▼5.99 -
Credit Union North 6.45 - - -
Credit Union South 5.75 - - -
eMortgage 6.04 6.15 6.69 7.19
Finance Direct 6.10 6.45 6.69 7.10
First Credit Union 6.45 - - -
Lender Flt 1yr 2yr 3yr
General Finance 5.95 6.25 6.50 7.10
HBS Bank 6.65 5.69 5.74 ▼5.79
HBS Special - 5.59 5.49 ▼5.49
Heartland 6.70 7.00 7.25 7.85
Heretaunga Building Society 6.70 6.00 6.30 -
Housing NZ Corp 6.74 5.70 6.09 6.29
HSBC Premier 6.84 5.45 5.65 5.79
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 6.75 5.99 6.39 -
Kiwibank 6.65 5.69 6.09 6.29
Lender Flt 1yr 2yr 3yr
Kiwibank - Capped - - - -
Kiwibank - Offset 6.55 - - -
Kiwibank LVR > 80% - - 5.55 5.89
Liberty - - - -
Napier Building Society 5.80 6.00 6.70 -
Nelson Building Society 6.95 6.15 6.60 -
NZ Home Loans 6.85 6.09 6.40 6.65
Perpetual Trust 7.70 - - -
Resimac 6.59 6.03 6.10 6.19
SBS Bank 6.65 5.69 5.74 ▼5.79
SBS Bank Special - 5.59 5.49 ▼5.49
Lender Flt 1yr 2yr 3yr
Silver Fern 5.95 6.10 6.55 7.05
Sovereign 6.85 5.99 6.19 6.39
Sovereign Special - 5.59 5.75 5.59
The Co-operative Bank 6.70 5.59 5.59 5.74
TSB Bank 6.74 5.95 6.19 6.30
TSB Special - - 5.79 -
Wairarapa Building Society 6.20 5.75 5.95 -
Westpac 6.59 6.09 6.39 6.65
Westpac - Capped rates - 6.74 6.99 -
Westpac - Offset 6.59 - - -
Westpac Special - - 5.79 5.89
Median 6.70 5.95 6.09 6.29

Last updated: 31 January 2015 5:00am

News Quiz

A well-commented on story last week mooted that many authorised financial advisers are out of their depths discussing what with their clients?

bonds

death

divorce

piles

birth control

MORE QUIZZES »

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