THE LEADERSHIP TEAM at City of London Investment Group has resigned just months after being appointed, the listed fund manager said in an announcement to the London Stock Exchange.
Doug Allison, CEO, and Valerie Tannahill, finance director, have resigned from the board with immediate effect following conflicting ideas about the direction of the group, which had funds under management of $4.1bn (£3.5bn) as of 31 December 2012.
All of the firm’s directors, including the parties stepping down, “are of the mutual view that these changes reflect the best interests of the group,” City of London said.
Their departure comes a little over three months after the pair was promoted to their current roles. Allison, having been FD since 1998, and Tannahill, who joined the firm in 1997 as finance manager, took up their roles on 1 January.
Barry Olliff, the firm’s chief investment officer who has taken up the reins as interim CEO, told Financial Director there was “nothing untoward” about the pair’s departure, but did cite a “difference of opinion as to the way the business should be run”.
In its statement to the stock exchange, the firm was at pains to highlight how investment performance has continued to improve, reconfirm that the current run-rate for operating profit, before profit-share, is approximately £1.1m per month based upon current funds under management and restate its intention to recommend a final dividend of not less than 16 pence, subject to stable markets and profitability over the final month of the financial year.
The appropriate process has been started to appoint a new finance director. Tracy Rodrigues, finance manager, has been appointed financial controller of the group.
Shares in the group were down 2.4% to 246p in morning trading on the day of the announcement (15 April).