“He might only be 51 but he has worked in the industry for nearly 30 years – that takes its toll.”
Mark Dampier, research director at Hargreaves Lansdown, says many investors will associate Wood with the fund and therefore he expects many to sell, or take it off their lists.
But, McDermott isn’t worried: “In cases like this we would always move the fund to a ‘hold’ but there is no need for investors to panic. The fund is being left in good hands.”
Similarly Tilney, which holds the fund on its buy list, is confident over the future.
Ben Seager-Scott, director of investment strategy and research, calls UK Opportunities a “good, solid fund” with an investment philosophy that is closely aligned with their own – moving into cash when caution is needed.
“In these cases we would normally suspend the fund until we have met with the team – but we are due to do so in the next few weeks – but he is retiring, it is much better than if he had been poached by a competitor.
“It sounds like they are planning a nice, fair handover and he doesn’t leave until after the summer.”
Recognising a broader industry shift away from the ‘star manager’ culture, Seager-Scott says these days often when his team carries out due diligence on a manager, they are introduced to the wider team as part of that process.
He will be asking about the process and try to identify any idiosyncratic nuances Wood brought to the table.
“That’s the million-dollar question. Has he developed a process that is so robust and easy to follow that it will be a seamless continuation?
“Or is there something more ephemeral that just can’t be replaced?”
JOHCM says Reutter joined as an analyst in 2012, taking on fund management duties on the team in 2015, the same year Ulrich came across from F&C.
A spokesman says: “It’s not like an analyst is being handed management duties for the first time. This is a case of three portfolio managers becoming two.”
Ken Lambden, group chief executive, says: “John has generated excellent returns for our clients over the past 11 years. He has always invested with conviction and been prepared to swim against the tide. We thank him for his tremendous contribution.
“John has built a strong team around him. Rachel and Michael are highly capable, experienced investors, and we are confident in their abilities to continue the good work that John led.”
