Albert Morillo is to continue managing Investec's European portfolio despite the announcement last w...
Albert Morillo is to continue managing Investec's European portfolio despite the announcement last week that his employer, BlackRock, is to merge with Merrill Lynch's asset management arm.
Morillo has run the European portfolio on an outsourced basis for several years and Investec confirmed that, while the merger alters the business he works for, it will be sticking with the manager for the time being.
It added it will monitor the terms of the transaction over the coming months. Morrillo's performance on the fund has suffered in recent years. However, over the 12 months he has brought the fund back up.
BlackRock presently has eight Dublin-registered bond portfolios. It has 96 staff members based in Edinburgh, where Morillo and his team are located.
The merger of Merrill Lynch Investment Managers (Mlim) with BlackRock is expected to close by September this year with the new company operating under the latter's name in a global context.
However, while the firm, which is to be 50% owned by Mlim's parent Merrill Lynch, will have presence in most key markets, the Merrill Lynch branding is expected to be retained in the UK as the group has the rights to the Mlim brand until at least 2010.
Mlim's strength lies in its equity offerings, with the profiles of UK managers such as Mark Lyttleton and Richard Plackett rising over the past few years.
While a joint announcement from both firms said their business models compliment each other, neither would be drawn on whether the merger would result in additional funds being made available to UK investors.
However, the statement said: "The new BlackRock will provide a wide range of investments including significant offerings in every major asset class encompassing equity, fixed income, liquidity and alternatives.
"Capabilities will include US and non-US products in each asset class, including products created in investment centres in the US, London, Edinburgh, Tokyo and Australia. In order to best serve clients' needs, various products will be available as separate accounts as well as open-ended and closed-ended funds."
The statement also said the firm intends to establish an operating platform that takes advantage of BlackRock Solutions and ensures a seamless transition for the clients of both firms. The firm developed BlackRock Solutions, used by institutional investors and external managers, to offer a suite of tools designed to streamline the investment management process.
Bob Doll, currently president and CIO of Mlim, is to become a vice-chairman of the new company and will also take the titles CIO of global equities and chairman of the private client operating committee.
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