Despite being a growing reservoir of funds under management, this critically important pool of capital is confronting mounting problems collating and disseminating key data in a timely manner.
The ratings house is pinning its growth strategy on a revamped methodology that increases the emphasis on governance to 25 per cent – a timely move considering APRA’s proposed reforms.
CIO takes majority shareholding at Johnston Asset
(pictured: Cassandra Hardman)
Global equity manager Johnston Asset Management has restructured its equity arrangements, with CIO Cassandra Hardman becoming the majority shareholder. Founder Richard Johnston retaining a minority interest.
The firm, which is represented in Australia by John Schaffer’s Catallyst Advisors, has been managing a global mandate for Perpetual Investments since 2005. Hardman will continue to run the global and international portfolios and Johnston will continue to co-manage the US strategies.
Hardman took over the reins of the international equities strategy in 1997 and established the global strategy at the behest of Perpetual.
Johnston said the switch in control was part of a long-term plan and reflected his desire to see the firm he founded in 1985 remain independent and 100 per cent staff owned.
As part of the new arrangements the number of equity holders moves from six to eight. The president and chief executive, Jeff Meyer, and portfolio manager Jim Pontone are added to the equity roster.
Two other current shareholders – Peter Cummiskey and Henry Woo, both managing directors and portfolio managers – have each increased their equity position.
Before joining Johnston, Hardman is known for instituting one of the world’s first concentrated equity portfolios, for Prudential. She has said previously that this was based on pragmatics: why own stocks simply to increase your correlation with an index as opposed to have a strong conviction in their prospective performance versus other opportunities.
Johnston’s International (ex US) equity strategy is ranked second since inception (1993) in the eVestment universe. The global strategy is top quintile since inception in 2006.
The style aims to buy quality, market-leading companies with sustainable prospective earnings growth only when they’re “on sale” – a value approach within a growth strategy.
