Research group van Eyk has issued a hold recommendation on all Tyndall Investment Management products, following internal turmoil in the group.
Senior analyst Angela Ashton says the decision was prompted by the recent departure of Tyndall’s head of company research Robert Osbourne and head of financial markets research Phil Hofflin to Lazard Asset Management. Both Osbourne and Lazard have joined Lazard’s investment team for the launch of Australian equities products by the group.
Their departures follow the takeover of Tyndall Australia by Royal & SunAlliance, which saw a number of senior executives leave the company, including chief investment officer Doug Little.
Ashton says van Eyk made the hold recommendation based on a number of observations, including the possibility of further defections from the Tyndall investment team to Lazards. She says the departures could lead to Tyndall’s investment models becoming “out of date due to a lack of resources available to update information”.
Ashton also questions the investment arm’s position in Tyndall’s overall corporate strategy.
“Through our recent dealings with Tyndall, it has become evident that up until this point, management did not see their investment team as being a critical part of the organisation,” she says.
Tyndall investment manager Tim Phillips says he is disappointed by van Eyk’s decision, but says the recent staff moves, coupled with the takeover point to extraordinary circumstances.
Phillips argues the hold move by van Eyk will give Tyndall the time to get things back on track.
“Under the circumstances, it’s not a bad result,” he says.
Morningstar managing director Graham Rich has said his group is confident Tyndall’s performance will pick up with news the former head of Tyndall’s New Zealand subsidiary Guardian Trust, Michael Good, is to take on the role chief executive of asset management at Royal & SunAliance.
“We have a high level of faith in Good, and we think with his appointment, and with a consistency of investment style at Tyndall, the situation will only improve,” Rich says.
