Manager Research

We have recently covered a full rating review of the local Ashburton funds which is in addition to the global funds where we initiated coverage in 2013. Unfortunately all funds covered, across asset classes, local and offshore, have resulted in Tier 3 ratings where we have various concerns across the business and shareholder, the various investment products and the teams which manage them. At many levels the business is in transition and this tends to be a common consequence of a fund management business with a bank shareholder.

The Glacier Global Stock Feeder fund is based on the Dodge & Cox Global Stock fund, which is rated Tier 1. Unfortunately, due to the additional Feeder fund costing, the low Dodge & Cox fee is offset by a high Feeder fund fee. Glacier has recently reduced the Feeder fee from 0.90% to 0.50%, which is in addition to the fund management fee of 0.60%, however we still see this as a disproportionately high charge.