“A fund is immediately reviewed if there is a fund management change. However, this is not automatically a sell. On many occasions, we are prepared to interview and question the new management and provide them a period of grace in which to monitor the fund.”
With markets expected to remain volatile in the foreseeable future, investment houses will try to attract talent in areas where they are either missing or want to grow. The key thing for advisers is to decide whether it is the manager that is the most attractive aspect of a fund or its investment strategy.
Nyree Stewart is deputy features editor at Investment Adviser
MANAGER MOVES IN THE PAST YEAR
February 2012 – Henderson announces Mitesh Sheth is moving to a ‘broader strategic role’ as director of business innovation, with Jim Irvine taking over his role as head of Henderson’s £16bn fixed income business. Colin Fleury, previously head of asset backed securities, took over the management of the secured credit business from Mr Irvine.
July 2012 - Roland Arnold is appointed co-manager of the BlackRock UK Special Situations fund alongside existing manager Richard Plackett, with effect from 1 August 2012. Mr Arnold has already been assisting on the fund for the past two years with BlackRock stating the appointment was recognition of the current process and the strong conviction in him as an investor. Mr Plackett remains the lead manager with ‘ultimate discretion’ for the portfolio.
August 2012 - Investec Asset Management’s star manager Alastair Mundy and his team is given responsibility for the Investec American fund after it is taken in-house. Previous sub-advisers Thornburg Investment Management had run the fund since 2002 but consistent underperformance led to Investec removing the mandate from them. The company notes the size of Mr Mundy’s team, roughly 10 people, meant the manager would be able to comfortably run the American fund alongside his existing Cautious Managed and UK Special Situations fund.
September 2012 – Alex Wright takes over the management of the Fidelity Special Values investment trust from Sanjeev Shah. The board of the investment trust announced the change in the summer, noting the manager change reflected “the wish of the Board to use more fully the flexibility afforded to it with its current investment strategy, including being able to invest a greater proportion of the portfolio in smaller and mid-cap stocks, and allows the company’s current portfolio manager, Sanjeev Shah, to focus solely on managing the open-ended Fidelity Special Situations Fund in accordance with his wishes”.
December 2012 – Tineke Frikkee is replaced by Richard Wilmot as the manager of the Newton Higher Income fund as the company unveiled changes to its investment offering. Newton highlighted some changes to the running of the fund under the new manager including broadening the buy and sell discipline of the fund and plans to progressively reduce the fund’s yield in the next 18 months.
