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The former managing director of van Eyk Research, Stephen van Eyk, will leave the company he helped create and which also bears his name.
The announcement today that van Eyk would depart the group follows signs of stress in the upper ranks of the company. Just prior to the company’s last board meeting non-executive directors Sarah Brennan and Stephen Roberts resigned from their positions on the board, moves which are believed to be in protest over the removal of van Eyk from his position as managing director.
At that same shareholder meeting, van Eyk was removed from that position and that of chairman of the company and given the title executive chairman, with long-time van Eyk executive Mark Thomas being appointed chief executive.
Taking up Brennan and Roberts’ places on the board as non-executive directors were Darren Pettiona, co-founder of Coin Software, and Cameron McCullagh, the former chief of Employers Mutual, the two men Thomas announced today would help him manage the company.
Van Eyk Research was established in 1989 and both van Eyk and Thomas have led the company since that time. Van Eyk has long been immersed in the research side of the business while Thomas has been more widely associated with the offshoots of the research business, Blueprint and van Eyk Three Pillars.
The company has grown to become one the leading suppliers of investment research to the financial services industry, with influence over around $53 billion of investments. More than 50 per cent of all financial advisers use van Eyk, a statement from the group said.
There has been speculation that rival research house Morningstar has contemplated acquiring all or part of van Eyk Research. Morningstar chief executive Andrew Bird said his group does not comment on speculation while van Eyk’s Thomas denied an acquisition was taking place.
Despite his exit from the management of the group, Van Eyk will remain a significant shareholder in the company, of which Thomas is a majority shareholder.
Nigel Douglas will now take up the role of head of research and assume all management responsibilities for van Eyk’s research streams, including fund ratings and strategic and tactical investment research. Douglas has been with the group for more than nine years, most recently as head of investment research. Meanwhile, Melissa Randall has been promoted to the position of head of asset consulting.
Mark Thomas will now, in partnership with the newly-appointed directors and management team, lead the company. Their leadership will be closely monitored by an industry that relies heavily on the output of this particular group.
These changes will be particularly important in an environment where dealer groups are relying heavily on research houses not only for ratings, but specific portfolio construction guidance.
According to research conducted by Money Management, van Eyk is the most prominent gatekeeper of approved product lists for the 20 largest dealer groups in Australia over the year to March 2009.
A pre-prepared statement issued by the group said van Eyk will continue to consult to the company until March next year.
The statement said van Eyk was leaving the group for “personal reasons”.
The researcher said he wishes “the new management team well, and hope the company continues to enjoy the support it has received from the market in recent years”.
“I also want to thank the whole team at van Eyk Research for their support and assistance over the past two decades, and for the patronage from the firm’s many loyal clients.”
