S&P affirms Three-Star Rating on Zurich Investments Small Companies Fund
Standard & Poor’s Fund Services today affirmed its three-star rating on the Zurich Investments Small Companies Fund, which is managed by boutique fund manager Ellerston Capital on behalf of Zurich Investment Management.
Ellerston Capital takes a benchmark-unaware, largely bottom-up approach to investment, with a long-term investment horizon. It looks to build a concentrated portfolio that contains its highest-conviction ideas.
“The Ellerston portfolio managers are highly capable with strong track records in similar strategies. We think well of the team dynamics, and the recent equity ownership change at Ellerston is positive in our view. However, we do consider the team could be stretched given the covered universe of stocks,” said S&P fund analyst Jason Patton.
Unlike some peers, the fund is not currently facing capacity constraints, which is a key positive factor.
“The offering has a relatively short performance history, and it is yet too early for us to form higher conviction levels, particularly with respect to the Asian equities component,” said Mr Patton.
