By Robert Stock Theo Zemek and James Gledhill are to leave M&G's fixed interest fund management team...
By Robert Stock
Theo Zemek and James Gledhill are to leave M&G's fixed interest fund management team, which has over £37bn of assets under management including £22bn in corporate bonds.
Zemek, previously head of fixed interest at the group, has moved up to the M&G board to become chief investment officer for M&G Europe.
Vivian Bazalgette, chief investment officer at M&G, said Zemek will have a dual role in the development and promotion of a range of new M&G products into continental Europe.
The move coincides with a decision by M&G to convert its fund range into an Oeic to facilitate its move into Europe.
Bazalgette said: "We are going to be launching a range of funds, as yet unspecified, for marketing into continental Europe and Theo Zemek, who has a tremendous industry record, is to be our investment ambassador to Europe and will also be involved with product design."
No date has been set for the launch of the funds, which will be tailored for the continental market, but will be available, though not marketed, to UK investors.
Gledhill, who has managed the M&G High Yield Corporate Bond fund since 1998, is transferring internally to PPM Ventures, Prudential's private equity division.
The management of two of the group's top retail funds, the £1,125.3bn M&G Corporate Bond fund managed by Anna Lee-Jones and the £264.3m M&G Gilt & Fixed Interest fund managed by Jim Leaviss, remains unchanged.
The new head of the M&G fixed interest team is Simon Pilcher, former head of the PPM fixed interest team. Pilcher will oversee two distinct groups within the newly combined team of M&G and PPM.
The external team headed by Leaviss, will manage institutional and retail mandates, while the internal team will manage assets for all life fund and annuity clients.
Leaviss takes over from Zemek as the named fund manager on the M&G Real Yield fund, while Echan Ugurtas will take over the management of the M&G Emerging Markets Bond fund and the £33.5m M&G International Sovereign Bond fund.
The £610m frAA rated High Yield Corporate Bond fund, which was managed by Gledhill will now be managed by David Fancourt, who had managed corporate bond portfolios for PPM. The £7.5m M&G Long Dated Sterling Bond fund, which was run by Leaviss, is to be managed by PPM's Michael Lak.
Robert Burdett, who with Gary Potter manages the Five Arrows range of multi-manager funds, said he is waiting for confirmation that Leaviss' extra duties would not detract from his management of the M&G Gilt & Fixed Interest Fund.
He said the management separation of retail and institutional mandates from life assets was welcome as it freed each to pursue the objectives of their investors rather than trying to combine the two.
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