Lonsec concerns over ING portfolio shuffle
LonsdaleSecurities(Lonsec) has voiced concerns over the reorganisation ofING Investment Management’s (INGIM) Australian equities large and small cap teams, following the defection of small cap portfolio manager Jack Chemello and analyst Misha Collins toBTlast week.
However, Lonsec has not altered its ‘recommended’ rating of the ING large cap product, the Australian Share Trust, but will review the rating following a meeting next week with INGIM chief executive Grant Bailey and head of Australian equities John Morgan.
Following the departures, INGIM has decided to disband the small cap portfolio team, making small cap portfolio manager Michael Courtney redundant. All small company stock analysis will now be undertaken by large cap analysts, with Morgan assuming portfolio management responsibilities for the small cap portfolio.
Lonsec’s concerns about the shuffle rest on the implications for the management of the large cap portfolios, according to Lonsec researcher Richard Everingham.
“The major concerns would be that large cap analysts are attaining new responsibilities in the small cap area — so how efficient it’s going to be, how it will work, has their remuneration changed as a result of these new responsibilities — these are the sort of things we will be asking when we meet,” Everingham says.
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