Approved Product List update Hillross December 2013

Transcription

1 Approved Product List update Hillross December 2013 Platform Closures - Approved Product List Update As part of the recent review of investment options across AMP platforms, AMP Advice Research have made a number of rating changes to your Approved Product List ( APL ). The rating changes have been made as a result of declining market demand, adverse investment performance and/or poor external ratings. Impact to APL ratings AMP Advice Research has conducted a review of the impacted products to determine whether it is appropriate for clients to retain their current investments in the closed products. In the majority of cases, advisers should consider recommending an alternative product to their clients as part of their next review. In these cases, the current rating is being downgraded to either a Sell on Review or Removed rating. Refer below for the list of rating changes. In a small number of cases, the Advice Research team believe there may be a case for clients to remain in the closed products despite not being able to make additional contributions to the products. In these cases, the current rating has been downgraded from a Buy to a Hold rating. Refer below for more information on the rationale for these changes. Hold ratings The following funds have been downgraded to a Hold rating. For these funds, there is no requirement to recommend an alternative product for your client s current investment holding. However, you may still choose to recommend an alternative product as part of your general review process. Fund APIR Code Rationale for Hold Rating AMP Wholesale Global Equity Value NML0348AU There has been some recent sign of management improvement. Some clients may have significant capital gains. Morningstar neutral rating Aberdeen Australian Equities MGL0114AU The fund is a largely index hugging fund with a well-resourced manager thereby presenting minimal risk for clients. Morningstar neutral rating. Aberdeen Global Government Bond CRS0006AU The fund presents relatively low risk given Government backed assets. It has largely index oriented exposures. The manager remains committed to the fund with future improvements to the investment approach flagged by the manager. Aberdeen Classic Series Australian Equities CRS0003AU The fund is a largely index hugging fund

2 with a well-resourced manager thereby presenting minimal risk for clients. Morningstar neutral rating. Clients with longer term holdings could have significant capital gains. Fidelity China FID0011AU Client conviction to the China Story may be significant. Preference for investors to use funds with a broader Emerging Market opportunity set. Sell on review ratings The following funds have been downgraded to a Sell on Review rating. The funds are being moved to Sell on Review due to adverse investment performance and/or poor external research ratings. For these funds, you should recommend client s redeem their current investment and move to an approved Buy option at, or before, the client s next review. However, there may be reasons such as transaction costs or unrealised capital gains that warrant a client to continue holding an investment with a Sell on Review rating. In these cases, you will need to seek an approval on a case by case basis. Note it is not possible to make additional contributions post 31 May A Sell on Review rating will generally be in place for 15 months. At the end of this period, the fund will be moved to a Sell rating. APIR Code NML0318AU MAQ0443AU HBC0010AU SSB0124AU TGP0004AU GTU0009AU CNA0811AU MGL0011AU BTA0125AU GTU0102AU Fund AMP-Wholesale Global Equity-Growth Macquarie High Conviction Metisq Oceans Wholesale Asian Share Legg Mason Emerging Market Trust-Class A GVI Global Industrial Share Invesco WS Asian Consumer Demand Invesco Wholesale Australian Share RREEF Global Property Securities BT Wholesale Future Goals Invesco WS Global Matrix - unhedged Removed The following funds have been removed from the APL. The funds are being removed from the APL due very low use in the licensee. In general, the funds are already on Sell and have been for more than 30 days and/or there are minimal funds under management (FUM) within the funds. For these funds, it is important to note that Advice Research are no longer monitoring the fund. APIR Code SBC0822AU BTA0130AU CNA0806AU MMF0113AU Fund UBS International Share BT Wholesale Japanese Share Invesco Wholesale Diversified Growth OnePath Wholesale Super-Balanced Additional contributions It is important to note that all of the funds will be closed to new money from 31 May This means there will be no additional contributions accepted into these funds. This applies for all closed funds regardless of the Advice Research APL rating. Please note that regular contributions, rebalancing and asset allocations may be affected post May 2014 if an alternative product is not selected.

3 What do you need to do? You will need to contact any clients who are currently making additional contributions into any of the funds that are closing. Where the fund has been downgraded to Sell on Review or Removed you should consider recommending an alternative investment option for that client s current holdings. Refer below for suggested alternative investments. For products on Hold, there is no requirement to act as quickly. However, you may still wish to recommend an alternative investment in these situations. In the event that you do not believe, it is in your client s best interests to switch investment options, you will need to seek an approval from the AMP Advice Research team unless the product has been moved to a hold rating. What support is available to me? AMP Advice Research has provided a list of suggested approved alternative investments for you to consider as replacement options (refer Appendix 1) where there is a like for like replacement on the APL. Where there is no like for like replacement, you will need to select an alternative fund based on the client s goals and objectives. In addition, a Record of Advice will be made available shortly to assist in documenting these recommendations. More information If you require more information on the changes to the approved product list or your advice obligations please contact Advice Service Desk on or research@amp.com.au.

4 Appendix 1 Alternative Investment Options The tables below outline suggested alternative investment options where there is a like for like product available on the Approved Product List across the approved platforms. PortfolioCare AMP-Wholesale Global Equity-Value NML0348AU Aberdeen Actively Hedged Intl Equities AMP-Wholesale Global Equity-Growth NML0318AU MFS Global Equity Trust Aberdeen Australian Equities MGL0114AU Tyndall Australian Share WS Portfolio Aberdeen Classic Series Australian Equities CRS0003AU Tyndall Australian Share WS Portfolio Macquarie High Conviction MAQ0443AU Perpetual Concentrated Legg Mason Emerging Market Trust-Class A SSB0124AU Aberdeen Emerging Opportunities Fund Aberdeen Global Government Bond CRS0006AU No replacement Fidelity China FID0011AU Platinum Asia UBS International Share SBC0822AU MFS Global Equity Trust GVI Global Industrial Share TGP0004AU Schroder Global Active Value Invesco Wholesale Diversified Growth PST CNA0511AU Experts Choice Growth Invesco Wholesale Diversified Growth CNA0806AU Experts Choice Growth Invesco Wholesale Asian Consumer Demand GTU0009AU Platinum Asia MLC Corp Inv Policy - Growth MT MLC0333AU Experts Choice Growth OnePath Wholesale Super-Balanced MMF0113AU Experts ChoiceBalanced Invesco Wholesale Australian Share CNA0811AU Fidelity Australian Equities Fund RREEF Global Property Securities MGL0011AU AMP Capital Global Property Securities BT Wholesale Future Goals BTA0125AU Experts Choice Growth Legg Mason Global Multi Sector Bond Trust-Class A SSB0012AU PIMCO EQT WS Global Bond Fund BT Wholesale Japanese Share BTA0130AU Platinum Asia K2 Asian Absolute Return KAM0100AU Platinum Asia Macquarie Asian Alpha AUD MAQ0625AU Platinum Asia MLC Corp Inv Policy - Capital Stable MLC0333AU Experts Choice Growth Invesco Wholesale Protected Growth CNA0805AU Experts Choice Growth Advance Wholesale International Fix Interest Index ADV0058AU No replacement North AMP-Wholesale Global Equity-Value NML0348AU Aberdeen Actively Hedged Intl Equities AMP-Wholesale Global Equity-Growth NML0318AU MFS Global Equity Trust Aberdeen Classic Series Australian Equities CRS0003AU Perpetual (W) Australian Macquarie High Conviction MAQ0443AU Perpetual Concentrated Legg Mason Emerging Market Trust-Class A SSB0124AU Aberdeen Emerging Opportunities Fund Aberdeen Global Government Bond CRS0006AU No replacement BT Investment-BT Australian Share BTA0021AU Fidelity Australian Equities CFS FC W Inv-Acadian W Glo Eq FSF0710AU Arrowstreet Global Equity Fund Personalised Portfolio Service AMP-Wholesale Global Equity-Value NML0348AU Schroder Global Active Value Aberdeen Classic Series Australian Equities CRS0003AU Tyndall Australian Share WS Portfolio Metisq Oceans Wholesale Asian Share HBC0010AU Platinum Asia Fidelity China FID0011AU Platinum Asia

5 GVI Global Industrial Share TGP0004AU Schroder Global Active Value RREEF Global Property Securities MGL0011AU AMP Capital Global Property Securities CFS FC W Inv-Acadian W Glo Eq FSF0710AU Arrowstreet Global Equity Fund UBS Emerging Markets Equity UBS0012AU Aberdeen Emerging Opportunities Fund