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AXA Rosenberg Asia Pac ex-Jpn: Rating Under Review

We’ve placed AXA Rosenberg Asia Pac ex-Japan’s rating under review as we’re concerned about Rosenberg’s announcement of an error in its quant model.

Alexander Prineas 29 April, 2010 | 4:50PM

We have updated our Morningstar Qualitative Rating and Research Report for AXA Rosenberg Asia Pacific ex-Japan.

"According to Rosenberg, a coding error in its risk model went undetected for more than two years; this means that unanticipated exposures may have been assumed in the fund. It is not yet known how this impacted performance. More concerning, though, is that the error was unsatisfactorily disclosed in line with Rosenberg’s internal policies. It appears to be significant because, in the wake of the error, the firm’s founder and co-head, Dr. Barr Rosenberg, will take a one-month leave of absence, and head of research Tom Mead will resign. Rosenberg has commissioned an independent review to assess, over several months, why protocols were not adhered to, and the extent of any performance impact on its suite of funds."

The full four page PDF report can be accessed here. It is free to users of morningstar.co.uk.

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article
Security NamePriceChange (%)Morningstar
Rating
AXA Rosenberg Asia Pacific ex Japan R Acc288.27 GBP1.57
About Author

Alexander Prineas