Liontrust Asset Management has announced a quartet of in-house managers will take over the management of two Guernsey-based funds run by Jeremy Lang.
Lang and William Pattison will leave the company next month, about nine months ahead of schedule. The duo's resignation announcement in January led to considerable outflows at the firm with net resignations in Liontrust's unit trust and offshore funds totaling £223m from 1 January to 23 March 2009.
Gary West and James Inglis-Jones will manage the Liontrust Dynamic Income fund and Anthony Cross and Julian Fosh will manage the Liontrust First Equity fund from 25 March 2009.
West and Inglis-Jones will use the Cashflow Solution, a UK Income Dynamic investment process to manage the Dynamic Income fund. The Cashflow Solution will be applied to select stocks from three baskets already used by the fund.
The fund's objectives remain the same. It targets a total return higher than the UK equity market, an income stream growing faster than inflation, and seeks to provide an annual income level higher than UK index-linked gilts.
Using the Cashflow Solution process, the West and Inglis-Jones managed Liontrust European Long/Short fund, an offshore domiciled hedge fund for professional investors, returned 11.32% in 2008 and 47.34% from launch between 6 December 2006 and 28 February 2009.
West and Inglis-Jones also manage the Luxembourg-based Liontrust Pan European fund. They have previously managed funds at JPMorgan and Polar Capital together.
Meanwhile, Cross and Fosh will manage the Liontrust Intellectual Capital Trust and the Liontrust First Opportunities fund using the Economic Advantage investment process to manage the Liontrust First Equity fund.
Economic Advantage is the collection of distinctive characteristics of a company that competitors struggle to reproduce.
Managers identify companies with a durable Economic Advantage allowing them to sustain a higher than average level of profitability for longer than expected. Experts say this "surprises" the market and leads to strong share price appreciation.
All four managers "are to implement documented and robust investment processes that are an evolution of those currently used by Jeremy and William to provide continuity for existing unit holders," says Nigel Legge, chief executive of Liontrust.
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