Investec star Alastair Mundy to run US fund
Group bringing fund back in-house for star contrarian manager to head up.
Investec Asset Management has sacked Thornburg Investment Management from its £395m American fund, and is handing the fund to in-house managers Alastair Mundy and Mark Wynne-Jones.
The company, which has used Thornburg as a sub-adviser on the fund since 2002, said after a “great deal of consideration” it had decided to remove the mandate from the group and pass it on to Mr Mundy and his team.
“Clearly the driving force has been that we wanted to bring the fund in-house to improve the performance outcome for the existing American fund investors,” said David Aird, managing director for UK distribution at Investec.
The American fund has delivered a bottom-quartile return of 3.2 per cent over five years to August 6 compared with the IMA North America sector average return of 28.2 per cent, according to FE Analytics. The data provider added that, over the same period, the benchmark S&P 500 index had returned 23.6 per cent.
The fund also ranks bottom quartile over the three and one year terms.
Mr Aird said Mr Mundy and his team were well equipped to run the American fund as the US exposure within their £23.4m Global Special Situations mandate had outperformed the S&P 500 by 16.7 per cent over a four-and-a-half year period.
“Alastair’s team has grown from two people to 10 and their coverage has grown from being specifically focused on out-of-favour stocks in the UK with strong balance sheets that have a very good opportunity to recover to fair value to stocks globally,” Mr Aird said.
The MD added that because Mr Mundy’s team had grown to 10 people, it would not be too much for the manager to run alongside his £2.1bn Cautious Managed and £601.3m UK Special Situations funds. Mr Aird said the team of 10 runs roughly £4bn.