BT Investment Management (BTIM) chief executive Dirk Morris's resignation has caused a mixed reaction from several research houses, with one suggesting his replacement could negatively impact the firm's culture.
"We think highly of Dirk Morris and for this reason were disappointed with the news that he is leaving the firm. He played an integral role in shaping BTIM and we think he will be missed," Morningstar manager of fund analysis Chris Douglas said.
"Finding the right person could take some time and the risk is that a new person could negatively impact on the firm's culture, especially as [Morris] hired a number of the senior people.
"In saying this, below Dirk Morris is a group of capable investment professionals and for all our current BT reports we retain conviction in their abilities."
At this stage, Morningstar won't be changing its recommendations on any BT reports, although the research house will be following developments closely.
Lonsec would prefer to see continuity in senior management within a funds management organisation, Lonsec general manager of research Grant Kennaway said.
"Morris's role is slightly unusual for Australian funds management as he has the added pressures of running a listed company," he said.
"While Lonsec acknowledges Morris's contribution to BTIM, his departure should not materially impact BT's underlying investment capabilities."
Lonsec has not changed any of its ratings on the BT suite of funds within its research universe and no changes are currently anticipated.
Standard & Poor's (S&P) will not be taking any rating action as a result of Morris's departure, but will continue to monitor BTIM closely as it manages this transition, S&P head of fund research Leanne Milton said.
"We will assess further developments in our global equities review currently underway," she said.
BTIM said yesterday that Morris will step down as the company's chief executive and executive director on 13 July 2009, rather than on 1 October 2009 as previously announced.
BTIM chairman Brian Scullin will immediately assume the role of executive chairman and will take responsibility for the day-to-day management of BTIM until a replacement chief executive is appointed.
