“Alpha is a strategy that Glass designed and implemented, and we believe investors should hold off from investing new money until the strategy's future is more clear.”
Morningstar has also downgraded the Brook Tasman strategy from 'Recommended' to 'Investment Grade'.
“We're comfortable with portfolio manager Chris Gaskin, as he's been at Brook for a number of years, and worked as portfolio manager for this strategy for the past six months,” Morningstar says.
Senior analysts Justin Edgar and Michael Locke, who have been with the firm for 10 years, are staying. Morningstar says they know the process and investment style inside out.
“We consider these three quality investment personnel both in their own right and relative to others in the market.”
It says the Tasman strategy is however no longer one of its top choices for Australasian equities exposure.
“The losses of Botherway and Glass – two clearly influential portfolio managers – will have a profound impact on the shop.”
“Brook has indicated that it will announce a new investment hire in the near future, and that Glass will remain at the firm until December. Tasman remains an appropriate solution for Australasian equities exposure, given the quality of the three remaining senior team members. But we need to be able to assess how Brook copes with the full impact of the departures of Botherway and Glass and evaluate the new hire before giving our unqualified backing,” Morningstar says.
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