Premier Miton faces stiff competition from Aberdeen Standard Investments as it sets a date for Alan Rowsell’s global smaller companies fund launch.
Rowsell (pictured) jumped ship from ASI along with analyst Imogen Harris last June, landing at Premier Miton in October to launch a global small cap fund.
On Tuesday Premier Miton teased Rowsell’s new venture, the Premier Miton Global Smaller Companies fund, setting a launch date for 22 March.
The new fund “will build upon the successful investment process” of the £1.4bn ASI Global Smaller Companies fund which Rowsell launched in January 2012 alongside former colleague Harry Nimmo.
Rowsell and Harris will use a blend of fundamental research and quantitative screening to select companies from the global small cap universe.
Premier Miton faces challenge going toe to toe with ASI
Despite Rowsell’s years of experience AJ Bell head of active portfolios Ryan Hughes thinks Premier Miton will have a difficult time challenging ASI‘s dominance in the global small cap space.
While Hughes notes global smaller companies funds remain “remarkably underrepresented” within the IA Global universe, “ASI has been the standout option for many years,” he said.
“It will certainly be a challenge for Premier Miton to go toe to toe with them, particularly with the small cap team at ASI being held in high esteem.”
AJ Bell has continued to rate the ASI Global Smaller Companies fund among its favourite funds despite Rowsell’s departure.
“The ASI fund is large at over £1.4bn and that may be the angle that Rowsell looks to capitalise on, but I think it will be difficult to persuade existing investors to move away from ASI, particularly in the short term while the track record is building.”
‘It could be a formidable team’
ASI’s global small cap team also benefits from having a much greater level of resource than Premier Miton’s growing team, said Fairview Investing consultant Ben Yearsley.
But he notes Premier Miton has a range of small cap specialists covering the UK and US for Rowsell to draw on, as well as a European multi-cap team.
“If they can utilise those managers as well then it could be a formidable team,” Yearsley said.
In the press release announcing the launch Premier Miton said its “team of strongly-performing fund managers” would be providing input to Rowsell’s fundamental stock analysis.
Commenting on the new fund Rowsell said: “This is an opportunity for us to do what we do best, being fully dedicated to global smaller companies so that we can deliver the best possible performance for our clients.
“We will follow our successful investment process with a truly global approach, enhancements to our quant screening, and the ability to leverage best-in-class small cap idea generation here at Premier Miton.”
