CFS Long Short Core Fund 'on hold'

Standard & Poor's Fund Services has placed the Colonial First State (CFS) Wholesale Australian Long Short Core Fund 'on hold', following the retirement of senior portfolio manager Martin Littler, effective 16 September. 

The move follows Littler's decision to step down as head of CFS Core in February this year, at which time Matthew Reynolds assumed leadership of the Australian equities Core team. 

"While no ratings action is being taken with regard to the team's long-only strategies, we believe Mr Littler's earlier than anticipated departure to be more significant for the team's long-short capacity," S&P Fund Services analyst Michael Armitage said.  

CFS has announced that senior portfolio manager Wayne Gentle will become lead portfolio manager of the CFS Wholesale Australian Share Long Short Core Fund, effective immediately. Co-portfolio manager for the CFS Australian Small Companies Core Fund, Dawn Kanelleas, will assume analytical coverage of the large-cap resources sector, also effective immediately. 

With Littler as lead portfolio manager, S&P's conviction had largely been attributed to "his experience and shorting capacity" Armitage said. This is "something that is not fully evident as yet, with regard to Mr Gentle, who will assume this role," he said. 

S&P considers the decision to transition Littler's large-cap resources coverage to Kanelleas to be "an appropriate interim measure", the ratings agency said in a statement. However, it tempered this by adding, "this is an extension of Ms Kanelleas's existing responsibilities, and we will be closely monitoring the firm's progress as it seeks to appoint an appropriately experienced full-time larger-cap resources analyst".