BNY Mellon Investment Management is set to lose on a £263m global equity mandate as Quilter Investors follows Nick Clay to RWC.
Quilter announced that Clay (pictured) would once again take up the mantle of the Global Equity Value fund, which he had previously run at BNY Mellon IM.
RWC head of distribution Gary Tuffield said being awarded the mandate was “a great achievement” for Clay and his team, “not least because of the rigorous research process Quilter Investors undergoes before partnering with new managers”.
The loss of the mandate represents another setback for BNY Mellon IM which has already suffered heavy outflows due to Clay’s departure.
Data from Morningstar shows the BNY Mellon Global Income fund has been in redemptions since Clay announced his departure last March, with estimated net outflows totalling £2bn. Assets in the fund were at £3.6bn at the end of March, down from £4.6bn 12 months ago.
Commentators have said the strategy looks set to face further disruption after Clay launched a near identical fund at RWC. According to Trustnet, the RWC Global Equity Income fund had £91m in assets as at 28 April.
See also: Nick Clay joining RWC highlights pull of boutique fund groups
RWC added to Quilter’s global partners
The Quilter Investors Global Equity Value fund will follow the same investment philosophy as Clay’s new fund for RWC, seeking to invest in companies on attractive valuations that pay a sustainable dividend above the broader market at the point of purchase.
Andrew MacKirdy, Robert Canepa-Anson and Colin Rutter, who followed Clay from Newton IM to RWC, will assist on the mandate, with MacKirdy serving as co-portfolio manager and the latter two as analysts.
The fund will feature in Old Mutual Wealth’s MPS, Wealthselect, run by Stuart Clark, while RWC will become one of Quilter’s global partners.
Clark said he had been impressed by Clay’s start at RWC and was delighted to welcome the team back to the fold.
“We have known and worked with Nick and his team for a number of years and have a high conviction in their abilities and investment philosophy,” Clark said.
“We are also excited to work closely with RWC who have the right tools and structure in place to help us provide strong returns and diversification to investors.”
Last month Clay’s RWC Global Equity Income fund received £205m in seed capital from Mediolanum International Funds as part of a new equity mandate in its multi-manager range.
See also: Nick Clay’s RWC global equity income fund wins £205m mandate from Irish multi-manager
