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Investec brings £300m American fund in-house for Mundy
by Emma Dunkley on Aug 07, 2012 at 07:45
The sterling-denominated fund, which has been managed for 10 years by Thornburg Asset Management on a sub-advisory basis, will be run by Mundy (pictured) and Wynne-Jones from 20 August.
Over the last decade the fund has had a value tilt and a portfolio of around 40 large cap stocks.
David Aird, managing director of the firm’s UK client group, said this value bias means Mundy’s contrarian team is ‘ideal’ for taking on the fund’s management.
‘We outsourced our American fund in 2002, so we have a long relationship with them [Thornburg],’ said Aird. ‘But of late, performance has not been up to scratch.
‘This is something we haven’t rushed into. We’ve spent a while reviewing the long-term future for this fund. We have decided the ideal team to take this on is Mundy’s contrarian team.’
Mundy and Wynne-Jones will work with their team of 10 investment analysts to run the American fund in their value style where they screen and highlight stocks that are out of favour but have a good chance of share price recovery.
In taking over the fund, Aird said its investment objective will remain the same while the risk profile of the fund is also expected to remain in place.
Mundy and Wynne-Jones’s team runs more than £4 billion in assets, helping to manage Investec’s £2 billion Cautious Managed fund , as well as the firm’s UK Special Situations and Global Special Situations funds .
Aird said Mundy and his team have been making allocations to US equities for several years, within their global equity funds and on US equity strategies in segregated mandates for institutional clients.
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