Insight Investment has identified Investment Manager Selection (IMS) and former managing director ...
Insight Investment has identified Investment Manager Selection (IMS) and former managing director of Edinburgh Portfolio Paul Talbot as potential stop-gap managers of its multi-manager business following the decision by Bambos Hambi and his team to quit.
Hambi is to join Gartmore in mid-November as head of multi-manager and the group expects to launch an unfettered funds of funds product by the end of the year. The team will also be responsible for Gartmore's existing £320m fettered fund of funds.
Insight has confirmed that Hambi and his deputy Marcus Brookes will work out three months' notice, while the other three members of the team, analysts Alexandra Mann, Ari Towli and Robin McDonald, will leave after a month. At Insight, Hambi currently manages £720m across a range of fund of funds vehicles.
Managing director of Insight's multi-manager business Nigel Whittingham said the group remains committed to multi-manager as a proposition and is now seeking replacements of similar calibre.
With the majority of high-profile retail fund of funds managers well tied in to their respective employers, Insight is prepared to look among manager of managers and discretionary operations to find suitable replacements.
As any such individuals would likely have a lengthy notice period, Whittingham is in talks with various organisations, such as IMS, that could run the multi-manager assets on an outsourced basis if the replacements are not in place when Hambi and Brookes leave in November. Founded by former managing director of Fidelity in the UK Richard Timberlake, IMS has stepped in to run vacant multi-manager assets in the past, most notably when John Chatfeild-Roberts and team left Lazards for Jupiter in 2001.
Talbot left Edinburgh Portfolio at the end March this year following the integration of the business into parent Edinburgh Fund Managers (EFM) and has since set up his own multi-manager consultancy, Paul Talbot Consulting.
The incumbent team's departure from Insight is also likely to mean a change in how the group runs multi-manager money, as Hambi will export his established 'five Ps' methodology of fund picking, which examines philosophy, process, people, performance and price in turn.
Whittingham said: 'The important thing for us is to provide our clients with a benchmark-related return within defined risk parameters and the process is merely a means to that end. The team we bring in may have a different way of achieving that but any new method is unlikely to be radically different.'
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