Managed by Strategic Capital Management (SCM), the product was an absolute-return-focused multi-manager strategy for Australian listed equities and employed a so-called risk-budgeting approach, according to S&P.
The fund aims to deliver annualised absolute returns of at least 10 per cent, with volatility of monthly returns under 12.5 per cent each year.
"SCM is staffed by a small but relatively seasoned team of advisers/asset allocators, in whose specialist capabilities we have a degree of conviction," S&P analyst Jason Patton said.
"However, limited dedicated resourcing leads us to question the fund's ability to deliver on a key aspect of the value propositions for multi-manager strategies: wide-ranging, thorough and ongoing coverage of the investable universe, with diligent vetting for the best possible opportunities.
"Additionally, SCM favours a highly concentrated manager mix, which in our view exposes investors to unnecessary risk."
