Old Broad Street Research (OBSR) says it is continuing to monitor the new multi-manager teams at F&C, Fidelity and Gartmore after suspending its A and AA ratings.
OBSR says it has met with the new teams at each firm and will watch as they “establish themselves and demonstrate their credentials” before deciding whether to reinstate the ratings.
Ratings on the funds - four from F&C, three from Fidelity and five from Gartmore and all at least A rated with six AA rated – were suspended in April except for the Fidelity funds, which were suspended in July last year.
It followed “significant” personnel changes to each firm’s multi-manager teams, with both Richard Philbin’s departure from Fidelity and Bambos Hambi’s exit from Gartmore particularly influencing OBSR’s decision.
OBSR says it also suspended the ratings on the three Fidelity multi-manager funds following the quick-fire departures of Chris Ralph, Simon Mungall and Jason Collins.
Gill Hutchison, OBSR investment research director, says: “Recent months have seen a number of changes in personnel responsible for various multi-manager propositions.
“OBSR has taken time to meet with new managers and teams in order to understand the changes and assess how funds are to be managed in the future.
“While we acknowledge that there are some positive developments, it is too soon for us to award OBSR Fund Ratings to the multi-manager propositions offered by F&C, Fidelity and Gartmore.
“We will continue to monitor these propositions over time as the new teams establish themselves and their processes and demonstrate their credentials through the management of the funds.”
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