Key man departure earns Portfolio Partners a downgrade
Zenith Investment Partners has placed a sell rating on Portfolio Partners’ high-conviction Australian equities fund, the Elite Opportunities Trust, following last month’s resignation of Chris Kourtis as portfolio manager.
Kourtis resigned from Portfolio Partners (PPL) to take up a position within Consolidated Press Holdings (CPH), to manage private money on behalf of the Packer family interests.
The Melbourne-based researcher has also recommended that clients seeking a comparable concentrated equity alternative to PPL’s Elite Opportunities Trust switch their allocation into the BT Focus Australian Share Fund.
Zenith said in a statement that it had reviewed its rating on the Elite Opportunities Trust after meeting with senior PPL investment management yesterday.
It said it is “comfortable with Richard Dixon of PPL as a capable replacement to Kourtis” but that “on a relative basis Elite Opportunities has fallen down our rating scale and other products are preferred”.
In a re-shuffle at the group following Kourtis’ resignation, Dixon assumed responsibility for the management of the Elite Opportunities Trust’s $170 million funds under management, while also remaining as portfolio manager of its Institutional Long/Short Trust.
In May this year, before the announcement of Kourtis’ resignation, Zenith released a ‘recommended’ rating on the Elite Opportunities Trust.
Zenith said then that it “rated highly the experience, expertise and track record” of Kourtis but also cautioned investors that "the eclectic style of the product means it is heavily reliant on the skills of the portfolio manager, and as such a high level of key man risk exists in the product".
The researcher yesterday said it had retained its ‘recommended’ rating on PPL’s Wholesale High Growth Trust, which is managed by Ian Lang with Dixon assisting.
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