BT Aust downgraded
Morningstar has reduced BT Funds Management Australia to a two star rating.
Thursday, August 16th 2001, 7:44AM
Morningstar yesterday officially dropped BT Australia to a two star rating, while BT New Zealand remains a four star manager.
The ratings downgrade is primarily based on the past performance of BT Australia's funds.In its lengthy, 6 page Ratings Alert Morningstar says that BT Australia is underperforming their benchmarks and peers in all asset classes. Morningstar boss Graham Rich says if the underperformance was isolated to one area the problem wouldn't be so bad. Morningstar acknowledge the BT Australia has been undertaking sweeping changes within its organisation. While supportive of the changes it says they will take time to flow through into results. "The recovery process is likely to take quite some time to become effective, and is not without uncertainty," it says. "It takes time to turn investment performance around, especially when major organisational changes are also taking place."
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