Tower sees key staff and rating slip away.
Ratings group Assirt has slapped a 'hold' rating on all Tower Asset Management’s funds with exposure to Australian equities. This follows the departure of four members — out of seven - of its Australian equities team to Alliance Capital Asset Management.
Ratings group Assirt has slapped a 'hold' rating on all Tower Asset Management’s funds with exposure to Australian equities. This follows the departure of four members — out of seven - of its Australian equities team to Alliance Capital Asset Management.
Indeed, head of Australian equities Don Low, Australian equities portfolio man-ager Andrew McCauley, senior research analyst John Bergin and analyst Naz Res-sas will head to Alliance in about a month’s time, allowing for a transition period within Tower.
Craig Turnbull will remain with Tower, assuming responsibility for managing the Australian equities class alongside his other full time responsibilities as investment strategist responsible for asset allocation, as well as supervisor of overseas equities and direct property asset classes.
Tower Asset Management chief executive officer Derek Goodyer and other figures met with Assirt senior research manager Patrick Bennett on Monday but both were not available for comment at time of writing.
However, in a statement released on Friday, Goodyer says Tower is certain it can still work effectively in the interim and the four members will remain for a month to allow an effective changeover period.
"We are confident the remaining members of the team have the necessary skill and experience to maintain the investment program until new appointments are final-ised…which is why our colleagues will stay on to ensure a smooth and seamless transition," Goodyer says.
Earlier this month, Tower scotched rumours of movements within its Australian equities team, emphasising that all previous year's bonuses had been paid and all staff had returned to work.
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Jason Spits
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