Newton raids Blackrock for flagship £15bn fund

Newton Investment Management has poached Andy Warwick from Blackrock as it expands its flagship multi-asset fund.

Newton raids Blackrock for flagship £15bn fund

Warwick will become co-lead portfolio manager on the Real Return fund, which holds £14.8bn assets under management, alongside Suzanne Hutchins and Aron Pataki.

At Blackrock, Warwick was co-manager of the Blackrock Dynamic Diversified Growth fund, as well as being manager of the BGF Flexible Multi-Asset fund, Blackrock Balanced Growth fund and Blackrock Balanced Managed fund.

Blackrock has confirmed Dynamic Diversified Growth co-manager Adam Ryan will continue to manage the fund, joined by Rupert Harrison and Conan McKenzie. Ryan, alongside Jason Byrom and McKenzie, have been added as portfolio managers on the Balanced Managed and Balanced Growth funds. Byrom and McKenzie have been added as managers on the Blackrock Flexible Multi-Asset fund.

Blackrock investors were informed of Warwick’s exit on 26 April.

Tilney managing director Jason Hollands said the Real Return fund generates significant revenues for Newton, a point that was noted in the press release from parent company BNY Mellon Investment Management. “Understandably they want to ensure there is breadth as well as depth in the management team. Broadening out the team should help with long-term succession planning.”

BNY Mellon Investment Management head of UK and Ireland intermediary distribution Fergus McCarthy (pictured) said the firm expects to grow the strategy with investors in the UK, Ireland and other markets.

Warwick’s strengths are in cross-asset-class research, macro input and portfolio construction, he said.

“The strategy will continue to be based on its fundamental principles, but its approach will continue to evolve as the strategy seeks to navigate an evolving financial landscape and exploits a broad opportunity set to meet the requirements of our clients.”

Hollands said said multi-asset, low volatility strategies have recently struggled to eke out inflation-beating returns net of fees. “But as the days of ultra-loose monetary policy abate and market volatility resurfaces, I’d expect to see lower level levels of correlation across asset classes, which should lead to a better opportunity set for these types of funds.”

Newton Real Return performance

Newton Real Return-1.02-1.513.458.6447.38
IA Targeted Absolute Return sector0.071.745.0512.2228.56
Libor GBP 1m +4%2.184.4013.8124.3260.27
Source: FE Analytics

Warwick joins on 30 July and will report to Hutchins.


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