Deutsche to merge LPT teams
The Chinese wall between Deutsche Asset Management’s (DeAM) Paladin and Sentinel Australian listed property trust (LPT) teams will come down next month, when the two merge.
The two teams of three will become one team of four managing $2.3 billion, lead by Danny Ekins from the Sentinel side.
The timing of the merger was prompted by the imminent retirement of Paladin head, Andrew Stubing, DeAM chief investment officer Andrew Fay told Money Management.
“Our research of the LPT market was telling us we’d have to do it anyway, Andrew’s retirement on February 28 meant it was a good time to make the break,” Fay said.
Sentinel analysts David Curtis and Chris Robinson have been retained in the new team, as has Paladin’s Mark Ferguson, but a third Paladin analyst has been retrenched.
The increasing complexity of Australian LPTs, many of which now incorporate property management and development arms, as well as growing offshore interests, was creating too much work for a three-person team, according to Fay.
“Our guys here also need to work closely with DeAM’s US property manager, RREEF, and they were getting doubled-up requests for everything.”
Fay said the new Australian LPT fund would not lose any ability to outperform, despite now managing almost 3 per cent of the $75 billion LPT market, but it would be closed to new institutional mandates. It will continue to be available to the retail market through master trusts.
Recommended for you
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With wealth management M&A appetite only growing stronger, Business Health has outlined the major considerations for buyers and sellers to prevent unintended misalignment between the parties.
Industry body SIAA has said the falling number of financial advisers in Australia is a key issue impacting the attractiveness and investor participation of both public and private markets.
