deutsche equity income sees £130m leave fund while hsbc loses £230m from three portfolios
Robert Shelton's Newton Income fund suffered a £110m redemption following the reallocation of Bradford & Bingley (B&B) Pep and Isa customers assets by third party administrator Axa Multimanager.
B&B took the decision to move the £610m worth of assets to Axa Multimanager last summer and the segregated mandate Oeic which Axa designed, Axa Select, launched on 12 October.
Axa Select consists of two sub-funds, Axa Select Growth and Axa Select Income. The underlying assets have been allocated on a segregated mandate basis with assets managed by a number of different providers, who were selected following an extensive beauty parade.
Newton Income fund was far from being the only notable loser with the reallocation, with significant withdrawals hitting funds managed by Deutsche, Invesco Perpetual, HSBC and Schroders.
Deutsche's Equity Income fund, previously managed by Adrian Frost, lost £130m, while the Neil Woodford-managed Invesco Perpetual High Income fund saw a withdrawal of £25m. HSBC suffered a total withdrawal of £230m across three funds, HSBC Blue Chip, HSBC FTSE All-Share Index, and perhaps most surprisingly at all, Tim Russell's Income fund. Another casualty was the Schroders Enterprise fund, managed by Tom Carroll, which witnessed a net loss of £110m.
Approximately £375m of the transferred assets have now been allocated to the Axa growth sub-fund, and about £235m to the income portfolio.
The Select Growth portfolio has been divided up between eight management companies. Around 60% of this, or £225m has been placed in four UK equity mandates, managed by SG Asset Management, Merrill Lynch Investment Managers (MLIM), JP Morgan Fleming and GMO Woolley.
The two largest cuts, of equal size, were awarded to SG Asset Management and MLIM who are managing around £67.5m each.
The remaining £90m split has been between Flemings and GMO Woolley.
Some 16% of assets in the growth portfolio are divided between two US equity managers, Goldman Sachs and Credit Suisse which have been awarded a combined £60m of the portfolio.
Schroders is to manage the European portion of Select Growth, worth 14% of £52.5m, while New York based fund manager Clay Finlay has been given 10% (or £37.5m) to run in a Pacific Basin remit.
The £235m income portfolio has six managers, with 70% of the portfolio placed in UK equities and 30% in fixed income mandates.
The equity portion of the income portfolio is being managed by the same investment managers that are running the growth portfolio's UK equity mandates.
Again SG Asset Management and MLIM have been awarded a bigger share of the fund, each being given 21% (or £49.35m each) compared to 14% each for JP Morgan Fleming and GMO Woolley. Morley Fund Managers is running a gilt mandate amounting to 14% of the portfolio, while M&G has been given responsibility for the portfolio's corporate bond exposure.
A small element of the original £610m is being held in cash by Axa Multimanager.
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