Seven key staff at Newton are effectively locked in until May 2002, including Robert Shelton while f...
Seven key staff at Newton are effectively locked in until May 2002, including Robert Shelton while fixed interest manager Helena Morrissey is giving up running money to become CEO, writes Fiona Henderson.
This follows a number of high profile departures from the group last week, including UK income manager Toby Thompson who is to join New Star, while CEO Colin Harris and CIO Charles Richardson relinquished their responsibilities.
Mellon took a 75% stake in Newton in 1998 and planned to buy the remaining 25% off the staff in two further stages. Last week saw the first round of remaining shareholders bought out by Mellon. There are seven staff members left who will not be paid out until next year.
Morrissey said: 'The handful of staff that have to wait until May 2002 include Robert Shelton, Ian Stewart, Stewart Newton, Colin Harris and Paul Butler.'
Separate from any share payouts last year, Newton set up a long-term incentive scheme, which all fund managers have opted into. The two other staff with shares still to be paid out are on the private client side of the business.
Until now Morrissey has been head of the fixed income team, senior member of the Newton strategy group and manager of three retail bond funds. These include the AA-rated High Yield and International Bond funds.
The High Yield Bond fund and the European High Yield Bond fund will now be managed by Theresa Egan, a fund manager who has worked on both funds with Morrissey. Stewart Cowley, who worked with Morrissey on the global bond funds and is joint fund manager of the Newton International Bond fund will take over full responsibility for these portfolios. Ed Britton, a member of the fixed interest team, will take on Morrissey's role as head of fixed interest.
Morrissey said: 'This has been a long-term plan, Cowley has been a shadow fund manager for some time and we have been preparing Egan for her new role.'
Thompson can't join New Star until January.
Shelton in hospital.
Five managers to be paid out in May 2002.
Morrissey gives up running funds.
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