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Simon Brazier: don’t let politics curtail Royal Mail chief's strategy

by Danielle Levy on Mar 12, 2014 at 07:00

Simon Brazier: don’t let politics curtail Royal Mail chief's strategy

Threadneedle head of UK equities Simon Brazier has warned against the perils of letting a political agenda prevent Royal Mail chief Moya Greene from driving further change in the business.

Citywire AA-rated Brazier, who runs the Threadneedle UK fund , told Wealth Manager: ‘Moya Greene is a fantastic asset for the Royal Mail and us as shareholders.

‘I want to make sure the political agenda does not mean she is constrained in her ability to bring about the change she wants to do in that business, but also she is not lured away.’

As the largest long-only investor in Royal Mail – holding 3% of equity – Brazier is particularly keen that Greene is remunerated appropriately.

‘There is only one other chief executive in the FTSE 100 who gets paid less than her,’ he said. ‘We are not here to pay money to people for no reason but she has demonstrated that she is a significant asset to the business, so we want to make sure the political agenda is not “let’s beat up Moya Greene”.’

Long-term approach

Having held the stock since its IPO last year, Brazier said Threadneedle is taking a long-term view and will look to buy more if the share price falls.

Although the price has risen hard, he said: ‘We are not investing on a three-month view but on a five-year view. There is a significant amount that Moya Greene can do.’

Royal Mail fits into the fund’s ‘strong franchises and unique assets’ category, which alongside ‘defensive growth’ currently comprises 75% of the portfolio.

This follows a broader reduction in exposure to housebuilders, easyJet and N Brown in favour of Reckitt Benckiser, Smith & Nephew and Diageo.

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