By Leo Bland Henderson Global Investors has given its latest fund manager recruit, Richard Prew, a ...
By Leo Bland
Henderson Global Investors has given its latest fund manager recruit, Richard Prew, a top-quartile performance target over rolling three-year periods for its UK Capital Growth fund.
Prew joins from Morley Fund Management, where he managed Norwich UK Equity. He will take over as lead fund manager of the Henderson UK Capital Growth Oeic, Pearl Equity Growth and NPI UK Growth.
Prew's starting date has not been finalised but he has left Morley and has a notice period of three months. He will take up the newly created position of director, retail UK equity growth, at Hendersons.
Hendersons is to give Prew the freedom to achieve his performance target on UK Capital Growth without restrictions being imposed on him, such as target tracking errors or stock and sector weightings. He will also be able to appoint his own assistant UK fund manager to work with him on the funds as well as a desk assistant to focus on dealing.
Prew will focus on the management of the three retail funds and will not be given other institutional portfolios to run.
All three funds in the All Companies sector are currently skewed towards larger-cap stocks in the FTSE 350.
Prew is likely to restructure the portfolios when he arrives at Hendersons to move their holdings down the market cap scale as well as reduce the number of stocks.
Henderson UK Capital Growth has 126 stocks, of which 88% is in the FTSE 100, 11% in mid-caps and 1% in small caps. This compares with the 65 stocks held by Norwich UK Equity which has 80% in the FTSE 100, 15% in mid-caps and 5% in small caps. Pearl Equity Growth has 194 stocks with 84% in the FTSE 100 while NPI UK Growth holds 126 stocks and has 88% in the FTSE 100.
Prew will take over from John Griffiths and the UK institutional team at Hendersons who are currently responsible for running the funds.
Prew has a pragmatic investment style with a growth bias but will buy value and out-of-favour stocks where he believes there is strong potential from recovery situations.
Mike Clare, chief investment officer of UK retail at Hendersons, said: "We are delighted to have someone of Richard's calibre and track record join our UK retail team. This is a significant step forward in achieving a clearly focused UK retail fund management capability and will enable us to build on our success to date."
Prew also spent eight years at Royal & SunAlliance where he managed the group's Equity Income fund before leaving for what was then, Norwich Union Investment Management in 1999. Norwich UK Equity is to be taken over by David Lis, currently the manager of Norwich UK Growth.
Henderson UK Capital Growth is ranked 206 out of 235 funds in the UK All Companies sector over the three years to 15 November on growth of 23%. The fund is 234 out of 292 over one year on a fall of 5.2% and is 182 out of 304 over three months on a fall of 1.7%.
Norwich UK Equity has an frAA rating and is ranked 33 out of 235 funds in the UK All Companies sector over the three years to 15 November on growth of 52%. The fund is 43 out of 292 over one year on growth of 9.3% and is 179 out of 304 over three months on a fall of 1.6%.
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