SQM Research downgrades Charter Hall fund on PM exit

Mike Taylor

Managing Editor/Publisher, Financial Newswire

16 November 2022

The exit of a key portfolio manager, Winston Sammut has seen the Charter Hall Maxim Property Securities Fund downgraded by research and ratings house, SQM Research.

SQM said it had revised the rating of the fund from 4.5 stars to 4 stars, noting that this was still a solid rating for the fund.

SQM said the rating action directly reflected the most recent team announcement regarding Sammut’s departure as head of Listed Property Securities and Lead Portfolio Manager.

“SQM Research believes this is a material loss to the experience and capabilities of the investment team,” the ratings house said.

However it said that it had noted and welcomed Charter Hall’s announcement that Mark Ferguson had been appointed as Head of the Charter Hall Maxim Property Securities business.

“Whilst acknowledging the significant experience and expertise that Mark Ferguson brings to the role, in addition to the existing experience and expertise of Patrick Barrett (Portfolio Manager), it is SQM’s opinion that this change represents an uncertainty to the securities selection/portfolio construction process and the future outlook for outperformance from the Fund,” the ratings house said.

It said it also noted the changes to Maxim’s Investment Committee.