Richard Buxton, who stood down as chief executive of Merian Global Investors today (January 8), had always intended to step down from being in charge, FTAdviser understands.
Mr Buxton announced his resignation as chief executive this morning.
He is being replaced by Mark Gregory, a former chief financial officer of Legal and General. Mr Buxton will remain a fund manager, shareholder and board director at the firm.
The move came after Mr Gregory joined the board of Merian Global Investors as a non-executive director in October and according to sources close to Mr Buxton it appears it was long in the making.
Ben Yearsley, a director at Shore Financial Planning, who had been in contact with Mr Buxton late last year, said: "I asked [Buxton] the question about six weeks ago and he said he'd always step down as CEO as his first love was fund management.
"I think combining the two roles in the long term is impossible."
Mr Buxton, who became chief executive of the business in 2015, teamed up with a private equity firm and five fund management colleagues to buy the business from its parent company Old Mutual last year.
He said the buyout had been planned for a number of years.
He will continue to be on the board of directors of the firm, as are fellow shareholders and fund managers Ian Heslop and Richard Watts.
Throughout the time he has been chief executive, Mr Buxton also ran the Merian Global Investors UK Alpha fund.
Over the past five years, the fund has returned 9 per cent, compared with 19 per cent for the average fund in the IA UK All Companies sector in the same time period.
Over the past three years, which roughly coincides with Mr Buxton's time as chief executive, his fund has returned 20 per cent, compared with 19 per cent for the peer group, and over the past year, which coincides with the buyout, the fund has lost 11 per cent, compared with 10 per cent for the sector.
The fund is now £1.7bn in size, having previously been more than £2bn.
Commenting on his decision to stand down as chief executive, he said: "2018 was a momentous year for Merian Global Investors.
"With the management buyout and rebranding complete, I believe this is the appropriate time for me to hand over the CEO role.
"I am completely committed to the business and I will continue to be involved in its development, in my role on the board. Having known Mark for many years, I am absolutely convinced that he is the right person to take the business forward.
"My passion for investment is as strong as ever and I think there are some great opportunities in UK equities today.
"I will continue to seek undervalued and attractive businesses, while actively working with firms to improve corporate governance. I look forward to delivering long-term returns for our clients for many years to come."
Darius McDermott, managing director at Chelsea Financial Services, said: "Richard has always assured us that running money is his top priority.
"I think he has done a good job for the company and investors during his time as CEO, by leading the management buy-out.
"The fund managers are happy and tied into the new business, which is good for investor, and performance has been very strong - particularly in the UK equities franchise and the quant-led strategies.
"The new CEO is a former CFO and, as a current board director, knows the company well.
"He is in a good position to take it forward and achieve its new goals. Richard remains head of UK equities and will concentrate on his funds and some new mandates. Given his track record, this is also a positive for investors."
david.thorpe@ft.com
