MMG loses CEO; Brook gets back a manager

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Financial advisory firm MMG says that its current chief executive Derek Young is stepping down, meanwhile on the other side of the bridge Brook Asset Management wins back a manager, but not its rating from Morningstar.

Monday, June 7th 2010, 9:17PM 1 Comment

Derek Young has announced that he intends to step down from his role as chief executive of MMG Advisory Partners later this year.

MMG is the advisory business which was formed out of Money Managers in 2008.

Since the firm changed ownership it has established a new advice process and developed a planning technology and platform to support that advice process.

“With this initial transformation largely complete, Derek wishes to pursue personal and other business interests,” MMG spokesman Bernard Duncan says.

“The board has already canvassed a range of options for the future leadership of the business. These will be further developed over the next few weeks.”

Young will stay on in an advisory capacity to the board. “The business continues as usual where our focus is to single-mindedly look after the needs of our clients,” Duncan says.

Meanwhile on the other side of town musical chairs goes on in the funds management world. Andrew South has decided to rejoin his former firm Brook Asset Management.

The move comes days after three of Brook’s five fund executives debunked to rival firm, Devon which was established by Brook founder Paul Glass.

While Morningstar is supportive of the move it won’t be lifting the “avoid” ratings it has on Brook's Alpha and Tasman strategies any time soon.

“We believe that investors in Brook Alpha should look elsewhere for a high-octane Australasian equities vehicle. The approach comes with more stock-specific risk than many other share funds, and a number of more attractive options are available.

“Prospective investors should also consider alternatives to Brook Tasman. Existing investors, though, may wish to give South time in the hot seat before deciding whether or not to sell. Investors in Brook Tasman don't necessarily have to rush any decision given South's experience and noteworthy performance track record, coupled with Brook's valuation-conscious approach and proven investment process.”

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