John Richards and Andrew Green have taken over the management of the £88.8m SG UK Growth fund from d...
John Richards and Andrew Green have taken over the management of the £88.8m SG UK Growth fund from departing manager and SG Asset Management co-founder Peter Seabrook.
Richards, also one of the founding shareholders, already runs a number of UK institutional mandates at the group, while Green manages the SG FTSE 350 fund, in addition to institutional accounts.
SG Asset Management runs a number of its retail funds on a co-manager basis, with one manager looking at the market from a bearish perspective and the other taking a bullish stance. On the UK portfolio, Richards will take a bearish approach and Green, the bullish. On decision-making processes, Richards will have the final say and will be the named manager on the fund.
In addition to their fund management responsibilities, each manager is also responsible for analysis of a specific sector, while the research generated is shared between the equity team.
Best stock ideas are placed in a pot that everyone can access and analysts are rotated every few years. The two managers, who took over the fund at the end of March, have already made changes to the way the UK Growth portfolio is constructed.
The number of holdings is to be reduced from the current 51 stocks to 45 and the tracking error is to be increased from between 3% and 6% to between 4% and 8%. The maximum sector weighting will increase from 5% to 8%, while individual stock weightings can account for 5% of the fund's assets, up from 2.5%.
Investment Week understands that Seabrook will not join a competitor but is instead taking a career break, after which he will consider his options.
‘Promising lead’ or ‘Back to the lab’?
PA360 2019 revisited
Complaints triple in past year
Our weekly heads-up for advisers
Tracking real performance