SQM Research has downgraded the rating of the Macquarie Australian Small Companies Fund, APIR Code MAQ0454AU (“the Fund”) from 4.00 stars to 3.75 stars following material changes to the investment team.
SQM Research has been informed by the Manager – Macquarie Investment Management (MIM) – of significant staff changes within Macquarie Investment Management’s Listed Equities business in Australia.
Patrick Hodgens, Head of Listed Equities for Asia-Pacific and four team members associated with the “fundamental” Australian equities business of MIM have elected to leave the business. This includes Matthew Fist who was a Co-Portfolio Manager for the Fund, as was Mr Hodgens. It is the understanding of SQM Research that Justin Gray will continue in his role as a manager of the Fund.
Macquarie Investment Management is yet to disclose full details of remedial action to be taken as a result of these departures.
The downgrade is an initial step SQM Research has taken in response to this development. We will continue to closely monitor and assess the situation as the Manager establishes and executes its strategy. The focus will be on the experience and quality of new members of the portfolio management team, portfolio structure, fund performance, and on trends in client inflows/outflows.
SQM Research expects that MIM will apply considerable resources and effort into ensuring a suitably qualified and experienced team continues to manage the Fund, whether from external or internal appointments.
Subsequent to this downgrade, the ongoing rating status of the Fund will be determined by the outcomes of the monitoring process.