F&C cuts size of emerging market team after review
F&C’s cost cutting sees two fund managers and government bond head exit the firm.
Two fund managers and the head of government bonds have left F&C Asset Management as the group’s cost-cutting exercise continues.
In March this year, Edward Bramson, executive chairman at F&C, said cost savings in 2011 exceeded the expected amount adding that the full £33.2m cost reduction programme was “on track and will substantially be achieved by year end”.
Tracy Fennell, F&C spokesperson, said the company undertook the review of the global emerging markets equity team earlier this year.
“This was both to review the investment process and poor performance to ensure that the cost base is consistent with potential revenue generation,” she said.
“As a result, the decision was made to reduce the size of the team, and led to the departures of Urban Larson and Peter Dalgliesh in April.”
Meanwhile, Helen Roberts, head of government bonds, has also left the group. She worked at F&C for 13 years after joining from Hermes Fund Managers where she held the role of director of government bonds.
“The head of government bonds role was one that entailed general management, oversight and client liaison, and the decision has been made that this role, as part of a cost reduction exercise is no longer required,” Ms Fennell said.
“The head of government bonds engaged in very little direct portfolio management activity, and Helen did not manage any money on behalf of retail investors.
“No changes have been made to any aspect of our investment process as a result of this decision.”
Mr Larson managed the £47m F&C Latin American equity fund, which will now be run by Gareth Morgan.
Meanwhile, the £26m F&C Asia Pacific Dynamic Equity fund, previously managed by Mr Dalgliesh, is now run by Anthony Linehan.
The F&C Emerging Market Equity ESG fund is now managed by head of emerging market equities Jeff Chowdhry and Mr Linehan has taken control of the F&C Pacific Growth fund.