Zenith reaffirms ratings on Ralton AM portfolios
Research Alert, Friday 1 October 2021
Jock Allen – Investment Analyst, Zenith Investment Partner
On 13 August 2021, Zenith was informed of the sale of Ralton Asset Management (Ralton). Ralton was acquired by its portfolio manager, Will Riggall, from 360 Capital Group (360 Capital).
Following the acquisition, Ralton entered into a strategic relationship with Clime Investment Management Limited(Clime). Clime (ASX: CIW) offers a range of financial services including wealth management, individually managed accounts and financial advisory support. Operating through a number of subsidiaries, including Madison Financial Group, Clime has approximately $A 5 billion in funds under management and advice, as at 31 July 2021. Under the arrangement, Clime will provide distribution, operational and investment team support.
The portfolios will continue to be managed by Riggall. In addition to the portfolios, Riggall will be involved in thedelivery of separately managed account solutions for Clime and Madison Financial Group.
Riggall will draw on Clime’s broader investment team of ten, who are responsible for a number of strategies across multiple asset classes, including Australian equities. As such, the Clime investment team has existing coverage of a significant portion of Ralton’s investment universe.
Zenith’s conviction in the portfolios is underpinned by Riggall’s ongoing involvement, believing him to be an experienced and capable portfolio manager. In addition, we note that the size and experience of Clime’s investment team compares favourably to the investment team of 360 Group that Ralton previously leveraged.
Although the corporate activity has the potential to be disruptive, Zenith believes that Ralton will benefit from Clime’s distribution capabilities and exposure to existing Clime clients and its related subsidiaries.
As such, Zenith has reaffirmed its Approved rating on the following Ralton portfolios.
|Name||APIR||Previous Rating||New Rating||RI classification|
|Ralton Australian Equity ex 50||n/a||Under Review||Approved||Aware|
|Ralton Dividend||n/a||Under Review||Approved||Aware|
|Ralton Concentrated Australian Equity||n/a||Under Review||Approved||Aware|