Managing director Anthony Quirk declined to comment on the change.
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Milford Asset Management has dropped veteran portfolio manager Mark Warminger from the investment team for its funds under management, according to an amended prospectus issued the same day it agreed to a $1.5 million settlement with the Financial Markets Authority over market manipulation.
The amended prospectus, for the firm's fundraising arm, Milford Funds Ltd, has been changed to show director and largest shareholder Brian Gaynor has taken over the New Zealand equity portion of its Trans-Tasman Fund and Milford NZ Equities Wholesale Fund. Mr Warminger previously had those responsibilities. A copy of the 'marked' up amended version is posted on the Companies Office website.
Managing director Anthony Quirk declined to comment on the change. "We've got nothing further to add," he told BusinessDesk.
The prospectus has also been updated to reflect the settlement with the FMA, which was announced yesterday. The investigation was made public in February and led to the New Zealand Superannuation Fund suspending its New Zealand equity management mandate with Milford, valued at $281 million.
Milford's amended prospectus notes that the settlement doesn't include the "trader" who hasn't been publicly identified. Quirk said the trader was on "extended leave" as of yesterday. The decision to settle had been a commercial one and a preferable option to a potentially drawn out court case, he said.
The regulator launched an investigation into trading activity between December 2013 and August 2014, which it considered created a false or misleading appearance through the extent of active trading in a particular security, or the supply of, demand for, price for trading in, or value of the securities. It considers Milford is liable for the trader's behaviour, something the fund manager rejects.
Mr Quirk said Milford had already embarked on improving its systems before the FMA launched its investigation after a period of rapid growth, and it has appointed PwC to review its governance, risk and compliance capabilities. That review has led to a series of improvements in its trading activities, such as the introduction of centralised dealing, and the planned implementation of an investment management system. Mr Quirk expects the new processes to be in place by December.
Mr Warminger joined Milford Asset Management in 2011 and had previously been New Zealand head of investment strategy for Macquarie Private Wealth. Before that, he managed two New Zealand and Australasian investment funds for Goldman Sachs New Zealand. He owns 1.7% of Milford Asset Management.
Gaynor directly owns 22% of Milford Asset Management. Quirk is listed as the second-largest of 34 shareholders, with about 11%.
(BusinessDesk)
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