Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

First State U-turn on global equity fund closure

First State U-turn on global equity fund closure

First State is set to reassign and refocus its global equity fund after having previously announced plans to close the strategy.

In a notice to investors, the investment firm said it would be reallocating management of the First State Global Opportunities team to its Singapore-based team.

It had previously been overseen by Habib Subjally and First State set out plans to close the strategy when news of Subjally's departure first came to light.

This was followed by Subjally officially leaving the firm along with his 10-strong London team, who all opted to join RBC Wealth Management earlier this month.

Under the proposed change, First State Stewart, which also manages the firm’s Asia Pacific and global emerging market equity funds, will be responsible for the global equity fund.

First State also intends to rebrand the fund as the First State Worldwide Leaders fund.

‘As a result of the review, First State UK has taken the decision to migrate management of all its global equity funds to one team, the First State Stewart team,’ the note said.

‘Given the global equity team and First State Stewart team are two distinct teams…it will be necessary to change the investment policy of the fund to permit the fund to focus on investment equity securities of larger capitalisation companies worldwide and allow broader exposure to equity securities of companies in the emerging market countries.’

Under the changes, more than 30% of the fund will be able to be invested in emerging market equities, which, First State said, would increase the risk profile of the fund.

Further to this, the fund’s approach to the Chinese market will also be altered. It can currently invest up to 25% directly in the China B Shares market but it will also be allowed to invest indirectly in the China A-Shares market, which covers mainland Chinese securities.

The proposed changed, which is still subject to a shareholder vote, is set to come into effect on February 24 2014.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Sarasin’s Boucher: why I like salmon with chocolate

Sarasin’s Boucher: why I like salmon with chocolate

Henry Boucher, manager of the £129 million Sarasin Food & Agriculture Opportunities fund, explains why he is gobbling up salmon and chocolate stocks.

Play Alibaba hype, the UK slowdown and opportunities in European sovereign bonds

Alibaba hype, the UK slowdown and opportunities in European sovereign bonds

Libby Ashby and leading wealth managers analyse what the Alibaba IPO hype means for Chinese equities, slowing growth of the UK economy and whether there’s anything left to play for in the European sovereign bond market.

Play Tesco, Japan and the rise of the central banker

Tesco, Japan and the rise of the central banker

 Libby Ashby and leading wealth managers scrutinise the food retail sector, Japan’s consumption tax hike and political risk in the markets.

Your Business: Cover Star Club

Veteran banker boosts Sanlam’s stockbroking team

Veteran banker boosts Sanlam’s stockbroking team

A veteran private banker has been recruited by Sanlam Private Investments to strengthen its advisory stockbroking team.

Wealth Manager on Twitter