Fund guru Morgan teams with Colonial

Former Perpetual share fund guru Peter Morgan has teamed up with the Colonial First State. Morgan's new fund management business 452 Capital will offer Australian share funds exclusively through CFS's retail fund offerings and its FirstChoice master fund.

452 Capital was established a month ago by Peter Morgan with Warwick Negus, an ex-Goldman Sachs banker. The highly-respected Morgan left Perpetual Investments in September with a resulting $2 billion outflow of investors' funds to other managers.

Colonial says the deal will allow Morgan and his investment team to operate independently from CFS. He said he'll continue to criticise the boards of companies he invests in – even Colonial's owner, the Commonwealth Bank. He also said he doesn't believe in “fancy funds” and will develop “vanilla” Australian share funds, the first being available in about March 2003.