Management changes at Goldman Sachs JBWere have led another rating agency to downgrade its Australian equities funds.
Standard & Poor's (S&P) has placed Goldman Sachs JBWere's (GSJBW) three Australian equities funds on hold following the appointment of Dion Hershan as head of its equities.
Last Thursday the investment manager announced that it would hire Hershan to head the division.
"This appointment represents the third head of equities within less than 12 months, which also means the existing team will need to adjust to another change in management," S&P analyst Tara Bell said.
Hershan's hire follows a series of management changes in the group. The group's former head of equities, Tim Hannon, moved from the job to focus on property and infrastructure in September last year. Following Hannon's exit, GSJBW chief investment officer Andrew Cooke added the head of equities to his responsibilities.
"In effect, Cooke's appointment as head of equities has proven to be an interim measure," Bell said.
"S&P will review the on hold rating once we have had an opportunity to meet with Mr Hershan."
In December, Morningstar placed the GSJBW funds on hold, citing management changes as one of the reasons behind the decision.
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