The co-manager of the Rathbone Recovery fund has exited the firm to follow interests beyond the investment industry.
In addition to the departure, Rathbones has decided to rename the fund to Rathbone UK Opportunities fund in an effort to remove any ambiguity from the name. The fund will retain the same investment approach, however.
The firm is also lowering annual management charge (AMC) on the fund from 0.75% to 0.45% for I-class units. Both of these changes will take effect from 23 October 2017.
Over the past three years to the end of July, the Rathbone Recovery fund has returned 28.6%, beating its sector average which achieved 26.4%.
‘As part of our ongoing review of our investment proposition and in light of discussions with advisers, it has become apparent that the term ‘recovery investing’ has become increasingly ambiguous with the definition of ‘recovery’ now applied too widely to be meaningful to investors,’ said Mike Webb, chief executive of Rathbone Unit Trust Management.
He added: ‘Fund managers frequently refer to differing characteristics when applying the term “recovery” and their mandates may embody varying investment styles and risk profiles. We have always sought to describe our investment propositions as lucidly as possible, and so have taken the step of renaming the Rathbone Recovery Fund to Rathbone UK Opportunities Fund. In doing so, we aim to give potential investors a much clearer impression of what they can expect from the fund.’
Meanwhile, Rathbones has confirmed that it is in merger talks with Smith & Williamson.