Credit Suisse Resignations: The Implications For Investors
February 28th, 2007
The two people who head up the Credit Suisse Multimanager team, Robert Burdett and Gary Potter, resigned yesterday with immediate effect. This has major implications for investors, as Credit Suisse have been going through a very challenging phase and Potter and Burdett were literally the only reason to stay invested with the company.
Their departure is the final nail in the coffin for Credit Suisse following the resignation of Bill Mott, former manager of their flagship Income fund, and the company simply cannot turn this around quickly enough for investors to find a reason to stay. We have removed their Multimanager fund (Credit Suisse Constellation) from our fund shortlist with immediate effect. There were no other Credit Suisse funds included as we had issues with the rest of the fund management group. No client should consider investing with them at this point and I would advise investors to seriously consider reviewing their existing arrangements.
This is the one problem that you don’t envisage with Multimanager funds, as the advantage of such an operation is that when a fund manager jumps ship you don’t have to decide whether to follow them or not, as the fund manager running the Multimanager funds will make that decision for you. It is rather ironic that we are now having to deal with this very issue, however it should not put investors off such a proposition.
Alternative Multimanager funds to consider include those from Jupiter, New Star, F&C and T.Bailey.
If you have any queries arising from this, please get in touch with our Investment Team on 0800 072 3186.
Author: Philippa Gee
February 28th, 2007
Category: Fund News, Fund Shortlist, Investments.
