Equity Income 

RWC launches fund for former Schroders duo

RWC launches fund for former Schroders duo

Former Schroders fund managers Nick Purves and Ian Lance's new fund, the RWC UK Equity Income fund, will be structured as a UK Oeic. 

Launching in early October, this is the first Ucits fund that RWC has chosen to domicile in the UK rather than Luxembourg.

Mr Purves was previously senior portfolio manager at Schroders for more than 16 years managing the Schroder Income fund and Income Maximiser fund, together with Mr Lance. 

Dan Mannix, chief executive of RWC Partners, said: "We have spent the last six months in extended discussions with a number of UK clients who will be early investors in the new fund. 

"Given that it will invest predominantly in UK equities and that the vast majority of interest has come from UK investors, we have decided to locate the fund in the UK.

"We remain totally committed to our Luxembourg Sicav which has been the core of our European mutual fund offering for over a decade and we don't foresee Brexit having any impact on our UK clients' ability to invest in these funds.  However, for a fund that is only going to be sold into the UK market there is a great deal of logic in domiciling it in the UK."

Tom Sparke, investment director at GDIM, a discretionary fund manager said: "We have discussed this with RWC and it is a very welcome move.   

"Dealing with UK-based entities over ones based in Luxembourg or Ireland is preferable for us.  In this case the UK equity dominated asset base means that it makes sense to have a UK structure as although we at GDIM will use offshore-based funds we know many firms that will not and this would limit RWC's potential domestic market."

Mr Purves ran income and high income funds at Schroders, before joining RWC in 2010.

Darius McDermott, managing director at Chelsea Financial Services, said: "Nick Purves uses a value style of investing. But they try to minimise volatility. They had a period of under performance in recent years as they were too cautious, but he has a very good pedigree."

david.thorpe@ft.com

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