"The downgrades reflect our decreased level of conviction in the manager's investment strategy, specifically its ability to navigate through the aftermath of the global financial crisis," S&P fund analyst Justine Gorman said.
"The strategies incorporate fundamental analysis with leading and lagging behavioural indicators to better time portfolio changes. In our view, these indicators have been of diminishing value since the start of the global financial crisis."
Both strategies are managed by Australian-based boutique Intrinsic Value Investments and distributed by Equity Trustees.
