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Investec brings £300m American fund in-house for Mundy
Markets
by Emma Dunkley on Aug 07, 2012 at 07:45
Investec Asset Management is bringing its £300 million American fund in-house so managers Alastair Mundy and Mark Wynne-Jones can improve its performance.
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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1 comment so far. Why not have your say?
Not all ETF's are the same
Aug 07, 2012 at 09:06
Are Investec spreading Mundy a little thin? Knowing how to manage in a value style in the UK surely is not the same as managing in a value style in the US. Managing a portion of assets with some US exposure is not the same as managing a US fund.
How much of his time is going to be taken away from his income strategy, his cautious managed strategy, his investment trust.
It is good to see Investec being positive and taking money from Thornburg if it isn't working, but is this the correct decision?
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