BT Investment Management (BTIM) co-head of income strategies John Sorrell has quit in favour of a job as head of credit for Tyndall and Suncorp’s newly-merged fixed income business.
BTIM will not replace Sorrell, with co-head Scott Osborne to take sole responsibility for running the boutique’s $6.5 billion credit operations.
Sorrell, who was Merrill Lynch credit and structured product chief before joining BT Financial Group in 2006, will work out a three-month notice period before joining the rival shop.
He joins former colleague Ileria Chan, who returned to Suncorp/Tyndall this month as a senior credit analyst after 12 months at BTIM.
It is understood Sorrell was hired by BT, which has not traditionally had a large presence in the structured product space, to replicate Merrill Lynch’s monthly income fund.
He is the first fund manager to quit the listed Westpac spin-off, which BT set up last year to offer equity to retain and attract investment staff.
A BTIM spokeswoman said it was never the company’s intention to keep both Sorrell and Osborne as co-heads and one of the two would have eventually left.
“BT is not unhappy about [Sorrell’s resignation],” the spokeswoman said.
“Someone was going to depart sooner or later.”
Market fluctuations have almost halved BTIM’s share price to $2.74 since it listed on December 10. On February 27 it reduced its cash net profit after tax forecast for the full year to 10-15 per cent below the previous guidance of $45.7 million.
Suncorp/Tyndall Investment Management managing director Brett Himbury said he was “extremely pleased” with the hire.
“It gives us a good solid base. We’re very keen to grow our presence in the fixed income market,” Himbury said.
The Tyndall-Suncorp merger caused a wave of hires and resignations.
Earlier this month, Roger Bridges was promoted to head of the group’s $12 billion fixed income operations after former head Peter Scobie resigned. Darren Langer also joined as head of portfolio management from Perpetual.
In November, the group lost its nine-strong equity team, headed by Dennis Donohue, to Wilson HTM’s boutique Pinnacle.
