M&G shakes up management on three equity funds

Global recovery fund manager David Williams is stepping down after 15 years

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M&G has made a number of changes to the portfolio management of three of its equity funds, with immediate effect.

Richard Halle is to become manager of the £121m M&G European select fund and the €89m M&G (Lux) Pan European dividend fund. He will be taking over from Phil Cliff on both mandates, who will turn his focus to sustainable investment research.

Halle (pictured) will also become one of the three co-managers on the £311m M&G Global Recovery fund. He will work alongside Daniel White and Shane Kelly, with a team approach to stock picking and portfolio construction.

White joined M&G in 2005 as a sector analyst, working closely with Halle and was appointed manager of the M&G North American Value Fund in September 2013, while Kelly joined M&G in December 2017 as investment director.

The incumbent manager of the global fund, David Williams, is stepping down after 15 years at the firm. He joined in 2004 and became deputy manager of the fund in 2008.

Adrian Lowcock, head of personal investing at Willis Owen, said: “M&G have a lot of depth in their business and are in the fortunate position to make changes from within.

“Given each of the changes are internal, this offers a lot of continuity and certainty for investors whilst it also allows managers to change their focus and pursue new opportunities. These announcements are good news as it demonstrates that fund management needs a team approach.”

Changes for the best

Chelsea Financial Services managing director Darius McDermott said two of the three funds have materially underperformed, so ” changes are probably for the best”.

On a one, three and five-year basis, the M&G European Select fund has underperformed against the IA Europe excluding UK sector with returns of 2.6%, 35.2% and 50.1%, respectively, versus the sector’s 5.2%, 37.6% and 52%.

The M&G Global Recovery fund has also underperformed over the same periods against the IA Global sector, with returns of 0%, 26.6% and 55.3%, versus 8.5%, 41.4% and 67.1%.

In a press release, M&G said there will be no change to any of the funds’ aims, objectives or policies.

M&G head of equities Anton Oliver said: “We are harnessing the team’s depth of experience and regional expertise which is already deployed across a range of strategies to enhance the resources across these three funds.

“Richard and Dan’s long experience investing in European and North American equities respectively, together with Shane’s expertise in the Asia Pacific region, will create a compelling and collaborative investment approach for the benefit of our customers.”

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