Market negative on Perry’s departure from Colonial
Colonial First State Investmentsis set to lose one of the founders of its highly regarded funds management team after the group’s long time head of Australian equities, Greg Perry, announced that he would leave the group in June.
Perry, whose contract as head of Australian equities at Colonial First State was up for renewal, revealed last night that he would retire from his position to spend more time with his family.
Colonial First State chief executive, Chris Cuffe, whose contract was also up for renewal, has re-signed with the group and will continue in the position he has held since 1990.
Ian Harding, Perry’s second in command at Colonial First State for the past seven years, will take over as head of the group’s Australian equites team.
Harding will personally manage Colonial First State’s Australian equities Geared Share and Leaders funds, previously managed by Perry, but not Perry’s Imputation Fund.
The group is believed to have a strong internal candidate to manage the Imputation Fund, but will also open the position up to external candidates.
Cuffe signalled yesterday the funds management group had been building up to Perry’s departure for some time.
“It is certainly a loss to lose anybody of Greg’s calibre but it was not a surprise and we have been planning this for ages,” Cuffe says.
“We are a big fund manager and have lots of talented staff who have been under Greg’s training and guidance for some time who will ensure that out process is maintained.”
News of Perry’s impending departure, Colonial First State’s only head of Australian equites since it evolved from First State Fund Managers in 1990, brought an instant response from the market.
Research house Van Eyk was advising its client today to place Colonial First State’s Imputation Fund on hold until a successor to Perry had been appointed, while fund ratings agency Morningstar has placed Colonial First State under review. Both groups met with Cuffe, Perry and Harding today.
“Overall, I am negative about the resignation of Greg Perry. He has been the main driver of outperformance of Colonial First State's Australian equities funds and consequently, he has contributed significantly to the growth of Colonial First State's total funds under management….It will be a challenge for [Harding] to replicate [Perry’s] track record,” Morningstar head of research Daisy Chee says.
Perry joined First State Fund Managers - then the small investment arm of the State Bank of NSW - in 1988 and along with Cuffe is credited with turning Colonial First State into one of the country’s largest and most successful funds management house, with $50 billion under management.
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