S&P announces ratings on first release of Multi-Sector Funds for 2011 review

Standard & Poor’s Fund Services today announced ratings for the first release of funds assessed as part of the 2011 multi-sector review. 

As a result of this release, 24 investment strategies have had their rating affirmed, 15 have been upgraded, while five have been downgraded. Eight strategies remain ‘On Hold’ and six are newly rated. 

“Multi-sector funds have once again sparked the interest of investors, particularly among those seeking advice-embedded investment solutions. We consider that renewed interest has been partly driven by the increasingly volatile market conditions that presently exist, and the belief that in a less certain macroeconomic landscape, the case for asset allocation and prudent strategy selection is further strengthened,” stated S&P fund analyst, Andrew Yap. 

“Multi-sector funds can no longer be considered relics of the past. Rather, through the incorporation of more sophisticated strategies—such as tactical and dynamic asset allocation, and extension of investment mandates to permit exposure to less traditional asset classes—they continue to evolve to keep pace with the investment needs of a more sophisticated investor base,” said Mr Yap.