Former Schroders fund manager Rosemary Banyard is joining Downing Fund Managers to launch an unconstrained all-cap equity fund, Portfolio Adviser has learned.
Banyard (pictured) previously worked at Sanford Deland where she ran the Free Spirit fund for three years until her departure in April 2019 for “personal reasons”.
Prior to that, she worked at Schroders for almost 20 years running the UK Smaller Companies fund with Andy Brough and the Mid Cap fund, as well as other segregated mandates.
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At Downing, she will launch the Unique Opportunities fund which will invest across the cap spectrum but with a focus on UK small and mid-cap companies.
Banyard will adopt the same investment style and process she has developed over her 25-year career to create a concentrated portfolio of between 25 and 40 positions from the FTSE 100, mid- and small-cap universe and Aim.
She will look for companies considered ‘unique’ and can achieve above average returns over the long term based on a sustainable competitive advantage through:
– having intangible assets such as brands, patents or regulatory licences;
– having cost advantages stemming from process, location, scale or access to a unique asset;
– being the leading network in a business segment; and/or
– there being high switching costs which generate high customer retention rates.
Banyard said: “I shall adopt a tried and tested investment strategy, refined over many years, which focuses on businesses that have few if any peers listed in the UK. These businesses are likely to earn above average returns on equity without employing excessive leverage, by virtue of possessing certain attributes that protect them against competition.”
> See also: Rosemary Banyard: UK not as cheap as relative valuations suggest
Downing Fund Managers partner and head Judith Mackenzie said: “It is a real coup for Downing to attract a manager of such calibre and experience. She has a long-standing and enviable reputation of hunting down the best companies in the UK, unconstrained by benchmark or market cap, and delivering benchmark and inflation-beating returns to investors over the long term. The new fund will be complimentary to our existing strategies and Rosemary will provide valuable experience to the rest of the Downing Fund Managers team.”
Fairview Investing investment consultant Ben Yearsley described Banyard as an “excellent hire” for Downing.
“Downing has had a tough time over the last year or so, with micro cap especially coming under pressure. Rosemary’s experience will help them evolve and will complement Judith Mackenzie very well in my view,” he said.
“On the fund front, launching now could well be an opportune time as she will have no historic positions and several months in which to invest the money. Her focus on self-funding companies with low debt is probably going to be even more important once we are through the current crisis.”
