Devon-Brook feud over
The court battle between Devon Funds Management and rival Brook Asset Management has ended after the parties reached a confidential settlement.
Tuesday, March 6th 2012, 10:14AM
by Niko Kloeten
The feud began in 2010 after Brook co-founder Paul Glass recruited three members of Brook's investment team to Devon, which he set up after the expiry of a one-year restraint of trade that followed the sale of Brook to Macquarie in 2008.
Brook filed legal action against Devon and its manager Mel Firmin, former executive director at Brook, who was joined by fellow ex-Brook staff Chris Gaskin and Slade Robertson at his new employer.
The departure of three key staff prompted fund analyst Morningstar to slap an "avoid" rating on two funds managed by the beleaguered Brook, which has struggled since the sale to Macquarie.
At the time the court action was launched, Glass described it as "sour grapes" by Macquarie, which last year took a $16.3 million charge to write down the value of Brook's assets.
However, the parties have issued a short statement saying they have reached a settlement. "The terms are confidential and no further comment will be made by either party," they said.
Brook's net fee income fell from $9.2 million to $3.1 million in the year to March 2011. At its peak it managed more than $1 billion of assets.
Its other co-founder Simon Botherway now works for ANZ Wealth, where he is general manager of investment.
Niko Kloeten can be contacted at niko@goodreturns.co.nz
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