ADAM loses equities head, swiftly downgraded

By Lucie Beaman

AllianzDresdner Asset Management(ADAM) head of Australian equities Mark Finselbach left the group last week after submitting his resignation the previous Friday — a move quickly followed byvan Eyk Researchdowngrading the group.

Deputy portfolio manager Jakov Males will assume responsibility for all portfolio management decisions until a replacement for Finselbach is found, with head of research Greg Galton retaining overall responsibility for investments.

Van Eyk Research, which has downgraded ADAM from ‘B’ to ‘Hold’, says Males has little portfolio management experience but previously worked with Finselbach in analytical roles atDeutsche Asset Management. The research house also notes support to the remaining Australian equities team is provided by “an experienced senior analyst group”.

According to ADAM chief executive in Australia, Peter Rayner, a search for a new head of Australian equities is already under way.

Over the last year, Finselbach was responsible for what van Eyk Research describes as the “substantial overhaul of the investment process and formation of a new investment team”.

However, the research house, in its recent review of Australian managers, was reluctant to recommend ADAM even prior to last week’s downgrade.

“As the new and large team has only been together for a short period and peer group review is an integral part of the process, we are cautious in recommending the manager at this time,” van Eyk said in its report.

Following Finselbach’s departure, the research house maintains this stance, saying “although we believe the process design is a sound one, the newness and stability of the team remains an issue”.