Hambi (pictured) made the switch in his Multi-Manager range before R&M poached A-rated Philip Rodrigs from Investec for the fund, but told Wealth Manager that he was pleased with the move.
‘It did surprise me but it strengthened the investment case,’ he said. ‘It added more quality resource to the team.’
Hambi explained that he had not been adding to the £578 million Investec fund while it was managing its capacity, and while reviewing the sector the R&M fund managed by AAA-rated Daniel Hanbury had stood out.
Over the past three years the R&M fund has returned an annualised 26.3%, while the Investec fund has generated 20.9%. Through the same period the Numis Smaller Companies excluding Investment Trusts index has produced 17.4%.
‘We had no dedicated smaller-company funds,’ Hambi commented. ‘We were getting smaller-company exposure from our multi-cap managers, but talking to a number of managers I decided that there are still some issues with the larger companies, as we have seen recently with Royal Dutch Shell and one or two others, where their earnings are not coming through.
‘The managers that I’m seeing and my team are seeing are still finding excellent value in the mid and small-cap space. That is where they are seeing the earnings growth, and we decided to increase our exposure to that area.’
Also on the Managed Fund side Hambi has switched from BlackRock’s Emerging Markets Equity Tracker into Standard Life’s £296 million Standard Life SLI Gbl Em Mkts Equity Inc Rtl AccGlobal Emerging Markets Equity Income fund.
‘The GEM Income fund was launched early last year and it had a big inflow in the summer. It brought it up to a decent size, so we have been able to support that in a bigger way now,’ said Hambi.