Martin Currie to rejig range with launches and closure

The Edinburgh-based group, which manages £1.46bn in retail assets, has announced plans to close its underperforming £52m UK Growth fund, which Mr Saunders has managed since December 2000. As a result, he will leave the company later this year.

Andy Sowerby, managing director of sales, marketing and client service, said Martin Currie was seeking to strengthen its global and emerging market equity proposition. Consequently, it will convert its £18m UK Equity Income fund, currently run by Ross Watson, to a Global Equity Income mandate by October, to be run by Alan Porter.

Martin Currie’s only UK equity product will be its £97m Securities Trust of Scotland, also run by Mr Watson, which will be actively marketed from this year.

“We just don’t see the point in having an Oeic and IT sitting side by side,” said Mr Sowerby.

This is in response to a long-term shift in demand away from domestic and into global equities, plus growing interest in closed-ended products post-Retail Distribution Review (RDR).

“We see decreasing demand for UK equities,” he added. “Our focus is increasingly going to be on international equities and from a UK Growth perspective, that market is very competitive with 300-plus funds in the IMA sector.”

While investment trusts account for only 2 per cent of Martin Currie’s business, the advent of the RDR in 2012 should increase appetite for these products, according to Mr Sowerby.

“The RDR will mean investment trusts will be analysed by research houses and, to be independent, advisers will need to prove they have considered them for clients, so it really will level the playing field,” he added.

Following its acquisition of Sofaer Capital European long/short business in June, Martin Currie will launch a Ucits III product – European Absolute Alpha – in September, to be managed by new recruits Michael Browne and Steve Frost.

Bolstering the Luxembourg-domiciled Sicav range will be a Japan Absolute Alpha fund, co-man-aged by John-Paul Temperley and Keith Donaldson, and Global Resources Absolute Alpha, managed by Chris Butler and Duncan Goodwin.

Mr Sowerby said: “We’ve run long/short strategies for 10-plus years and many of the absolute return funds out there don’t have experience anywhere near that.”

Rounding out the launches is a Latin America Oeic, to be managed by Jeff Casson. He is part of the emerging markets team – led by Kim Catechis – acquired from Scottish Widows Investment Partnership (Swip) in May.

Mr Sowerby says: “We’re bringing on a team proven in this space. There are only eight Latin America funds in the IMA sectors, although it’s a hugely important part of the world with a very small range of products for people to buy.”

The fund, due for introduction in November, will be an unconstrained best ideas product to complement the group’s China fund, launched in March.

Mr Catechis will lead a nine-strong Gem team and assume lead management of Martin Currie’s £26m Gem fund when he joins in November.