Investors in the dark on future of 452 Capital
High-profile boutique fund manager 452 Capital is on the brink of losing its chief executive officer and its remaining two joint investment heads.
The company, which has around $3 billion in funds under management, has notified at least two of its clients about the significant management changes now underway.
Co-investment heads Suellen Morgan and Mary Feros and chief executive Lyndsey Hancock, identified by 452 Capital collectively as 'the management team', have notified the 452 Capital board of their intention to leave the group, although no date has been set.
Suellen Morgan and Feros are responsible for investment management in the absence of co-founder and co-investment director Peter Morgan, who has been on personal leave for some time.
A note signed by 452 directors Ron Heinrich and Graham Hand on behalf of 452's board said no resignations had been formally received, with Morgan, Feros and Hancock to negotiate a departure date with the board. The trio said while remaining employees of 452, they would continue to "perform their duties acting in the best interests" of clients.
The board said it was now in discussions with the outgoing management team and major shareholders about "options regarding staffing and the future of 452 Capital".
The Commonwealth Bank of Australia (CBA) has a longstanding 30 per cent stake in 452, which equates to around $10 million, and 452 Capital director Graham Hand is also an executive in Colonial First State.
Colonial First State offers the 452 managed Australian share fund.
CFS Investments has told advisers it had received a letter from the board of 452 Capital regarding the management team’s intentions to leave the group. CFS is now “considering the options available to ensure actions are taken in the best interest of our investors”.
The original letter from the board was distributed by listed investment company Century Investments Australia, for which 452 is the investment manager.
In its note on the matter Century Investments said it had "no prior knowledge of any difficulties affecting the management team of 452", with its directors described as being "surprised" and "very concerned" by the developments.
Century's directors said there had been no "satisfactory explanation for the ongoing arrangements for 452", while adding conversations with 452 director and CFS executive Graham Hand had revealed no more information.
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