Tower drops growth for multi-manager
TowerAsset Management (Tower) has dropped its growth style Australian shares product, moving instead to an internally managed, style neutral, multi-manager offering.
As a result of discontinuing its in-house management of Australian shares, Tower’s five strong Australian shares team left the group last Friday.
The departures included head of Australian equities Albert Hung and senior analyst Dawn Kanelleas.
Clients invested in Tower’s domestic growth option will now be rolled into the new multi-manager offering, which will include external fund managersBarclays Global Investors,Investors Mutualand Jenkins Investment Management.
According to a statement from Tower, the changes represent a major positive shift in approach for the investment products offered by the group.
AnInvestorWeb Researchreport says while it does not currently have a formal rating on the Tower multi-manager product, the three managers listed are considered “sound investment managers” by the research house.
Prior to the changes, InvestorWeb had a ‘sell’ rating on the Tower growth style Australian shares product.
InvestorWeb analyst Glen Franklin suggests that investors invested in the now defunct product for style blending purposes may opt to reinvest in other domestic growth products, rather than move to the multi-manager offering.
Tower says it will continue to provide in-house Australian fixed interest and cash management, while supervising the external management of Australian shares and global assets with support from its New Zealand team.
Meanwhile, outsourcing arrangements for the Australian Ethical Growth Fund will be finalised in the near future.
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