MLIM COO Defends Manager Selection
Galley was questioned by lawyers, acting on behalf of the UnileverSuperannuation Fund (USF), about the appointment of 27-year-old Alistair Lennard to the USF £1 billion account.
According to Galley?s testimony, Lennard was a member of
Mercury Asset Management?s ?Select? investment team, had
three years experience as a fund manager, a “hunger for
success” and a “passion for picking stocks” when he took
charge of the USF?s £600 million equity portfolio.
Risk Levels
Unilever lawyers pointed out that Lennard?s portfolio had been run with significantly higher risk levels compared to that of Galley, who had run the fund before him (see Judge Says Unilever Targets “Nebulous” ).
Galley maintained that Lennard managed the fund within a
“managerial system of supervision.” She noted that his
decisions were “not taken from the air”, but were made as
part of a team effort (see
Managers Acknowledge Blame ? Unilever CIO
).
”
Informed” Decisions
When Galley was asked whether USF had been informed
about the decision to increase risk levels, she replied, “I
do not think that we had a conversation that compared the
portfolio with 1987.”
The suit claims that Mercury negligently took too much risk
when managing the fund between January 1, 1997 and March
31, 1998 (see
Merrill, Unilever Fight it out in Court
).
– Camilla Klein editors@plansponsor.com
Read more about the trial at:
CIO Mayall on Defensive in Unilever Suit