Colonial First State, the responsible entity of around $1.5 billion of 452 Capital’s $3 billion in funds under management, will replace 452 Capital with other managers including Integrity Investment Management and CFS Global Asset Management Core (CFSGAM).
“Following an announcement from the board of 452 Capital advising that the management team of 452 Capital does not intend to continue to participate in the management of 452 Capital’s business and the subsequent reaction by research houses, CFS has conducted a review and has determined that it is in the best interests of investors to replace 452 Capital with other managers, Integrity and CFSGAM Core,” CFS said in a statement.
452 Capital said two days ago that its management team of chief executive Lyndsey Hancock and investment directors Mary Feros and Suellen Morgan would step down after an agreed period of time.
The boutique’s board also said that it was holding discussions with management and major shareholders about options regarding the future of 452 Capital.
The development prompted Standard & Poor’s Fund Services to put a sell rating on 452 Capital’s large-cap Australian equities strategies, distributed by Colonial First State.
Morningstar also put 452 Capital on hold after the boutique announced that Hancock, Feros and Suellen Morgan would step down.
452 Capital was established in 2002 and its co-founder, Peter Morgan, took a leave of absence last year to tend to a personal health issue.
Fiani, formerly UBS Global Asset Management’s managing director and head of Australian equities, founded Integrity in 2007 together with former UBS executive directors and colleagues Shawn Burns, Marcus Truman and John Moran.
Integrity manages “several billion dollars” for its clients, which include some of Australia’s largest superannuation funds, according to its website.
