Royal & SunAlliance (RSA) has recruited David Berry as manager for its Equity Income and Growth & In...
Royal & SunAlliance (RSA) has recruited David Berry as manager for its Equity Income and Growth & Income funds, writes Fiona Henderson.
Berry, who joins on 9 July from pension fund managers Hermes, will take on running the portfolios from Mike Felton. Felton is giving up his income responsibilities to concentrate on the recently launched UK Prime and his existing growth funds.
Berry's background at Hermes involved managing income portfolios and RSA believes his arrival will give them a different style of management. He has a value bias while RSA has traditionally been a growth-orientated fund manager. According to the group, this was a key factor contributing to his recruitment as it will add a degree of flexibility to the fund and complement the existing style of the team.
RSA believes value management is more applicable to an equity income fund going forward. The Equity Income fund is currently fully invested in equities which the group hopes will lead to outperformance as markets begin to improve. In these conditions the group believes this is a better strategy than having an element of the portfolio in bonds.
The two funds will aim to be in the top third of their sectors over three year rolling periods.
Berry will be meeting with all the key intermediary contacts and discussing his plans for the funds in the coming months and it is likely that some structural changes will be made to the portfolios as a consequence of Berry's value style of management.
RSA will also be adding the Maximum Income and the UK Prime funds to its Pep transfer product. The next aggressively managed fund in the Prime range, European Prime is on schedule to be launched during this autumn.
The S&P A-rated RSA Equity Income fund is ranked 54 out of 84 in the UK Equity Income sector over three years to 1 June with a total return of 0.09% after charges, compared with a sector average rise of 6.2% and a FTSE All-Share gain of 7.83%.
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