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Ignis overhaul sees GEM relaunch and tech shutdown
by Eleanor Lawrie on Feb 25, 2014 at 11:30
Ignis is to relaunch its Emerging Markets Select Value Fund under Barings hire Mark Julio in a restructure that will see the closure of its International Global Government Bond fund and Global Technology fund.
Julio was hired in September 2012 from Barings asset management, where he was part of a team managing £2.6 billion in global emerging markets, to help Ignis expand in that space.
He will take on the €213 million Ignis International Emerging Markets Select Value fund, which will ditch its quant driven, value bias and adopt a stock specific, fundamental approach to global emerging markets. Existing manager James Smith (pictured) will concentrate on the management of the Ignis Global Equity fund.
'Mark’s appointment and the change of remit will broaden the fund’s appeal and is a significant step in the continued development of Ignis’ global emerging markets equities proposition,' the company said.
The emerging markets fund's sterling share class is second quartile over five years to January 31, and also over one year. In three years it is third quartile, losing 18.9% compared with a loss of 12% for the MSCI Emerging Markets index.
The firm has also decided to shut the €10.2 million International Global Government bond and €10.7 million International Global Technology funds, which it said were 'economically unviable to manage' because of their small size, and unlikely to see much demand in the future.
Reducing the fund range will provide 'greater focus for the business,' Ignis said.
'Consistent with our desire to reduce our fund range in order to provide greater focus for the business, we have decided to close or re-launch a number of strategies. These changes will allow the business to focus on the most appropriate products that we believe will be best aligned to the future needs of our clients,' the company said.
The International Global Government Bond fund is fourth quartile of the Lipper Global bond sector in all time periods to December last year. In three years it has lost 5.4% compared with a 1% rise for the Citigroup World Government Bond IndexManagers Russ Oxley and Stuart Thomson will now focus on the £2.6 billion Ignis Absolute Return Government Bond Fund.
Meanwhile,the Global Technology fund's sterling share class is fourth quartile in one year to December 2013. It is second quartile since its launch in September 2010, returning 42.8%, compared to a rise of 47% for the MSCI ACWI/IT sector. Manager Geoff Paton will remain a member of the US equities team
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