SQM suspends PAC Capital fund ratings amid media controversy

Mike Taylor

Managing Editor/Publisher, Financial Newswire

2 August 2023

Amid the recent controversy surrounding PAC Capital, research and ratings house, SQM Research has placed two of the company’s funds on ‘Hold’.

The two funds on hold are the PAC Global Balanced Fund – Retail Class and the PAC Global Growth Fund – Retail Class.

SQM said the this rating action followed the ‘Hold’ rating it placed on the equities funds managed by PAC Capital on the 25th of July given changes in personnel and proposed changes to the investment strategies to be applied in managing the equities funds.

“It also follows ongoing outstanding questions at the group level, which are continuing to mount,” the research house said. “SQM Research is seeking further information from PAC Capital and expects to receive formal responses from the manager in the coming days.”

“As a result of the developments described above, SQM Research has changed the rating of the Funds to Hold with immediate effect. The standard guidance used to describe this rating is shown below.”

SQM explained that a “Hold” means that a rating is suspended until SQM Research receives further information.

“The Hold rating is an initial temporary rating that will remain in place while SQM Research undertakes an assessment of any new information,” it said.

PAC Capital has been the subject of newspaper reports around the qualifications of its founder and chief executive, Clayton Larcombe, and the status of key investment personnel.