Royal London Asset Management (RLAM) has moved its Japan and Far Eastern assets to passive styles, resulting in the departure of managers Jonathan McClure and Edward Chan and leaving the future of equity head Jane Coffey unclear.
The switch means McClure’s £289 million Japan Growth fund and Chan’s £478 million Far East fund, as well as £360 million in separately managed mandates in these regions, will transfer to the firm’s existing passive team.
As part of the changes, RLAM also said it is currently in discussions with Coffey, manager of the UK equity fund, as to how she will be impacted.
The firm said the changes, which are subject to shareholder vote and FSA approval, come after a period of consultation with clients and regulatory authorities.
RLAM said: ‘We remain fully committed to the active management of equities in those areas where we believe that we can best add value for our clients and have a competitive advantage.’
The firm’s switch to passive management follows a similar move by Scottish Widows Investment Partnership last year, after it shut down its regional equity desks and cut around 23 investment roles.
SWIP reorganised its equities business so that a range of equity strategies were moved to quant models, rather than active management.