Brewin Dolphin dumps Miton fund

Brewin Dolphin dumps Miton fund

Wealth manager Brewin Dolphin has sold out of the Miton UK Smaller Companies fund, run by Gervais Williams, and replaced it with a £75m mandate established just three years ago.

Mr Williams has long been among the most high profile UK smaller companies fund managers, though a period of torrid performance in 2019 has seen the mandate shrink to £58m in size as of August 26, according to FE Analytics, from about £200m in mid-2018. 

The fund was the absolute worst performer among 50 products in the IA UK Smaller Companies sector in the 2019 calendar year, losing 13 per cent, while the sector gained 25 per cent.

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However, it is the absolute best performer in the sector in 2020 year to date, returning 36 per cent, while the sector has on average lost 11 per cent.

In its note announcing the fund had been dropped from the MI Select Managers UK equity strategy it runs as part of its model portfolio service, Brewin Dolphin confirmed it is replacing Mr Williams's fund with the £75m Teviot UK Smaller Companies fund. 

Antony Champion, head of intermediaries at Brewin Dolphin, said Teviot had been chosen “because of its rare value tilt to the smaller companies’ (small cap) sector which complements some of the more growth-focused managers in the wider MI Select Managers range.”

The Teviot fund is run by Andy Bamford, who was previously a partner at Aberforth, where he ran small cap funds.

He founded Teviot in 2016, with the Smaller Companies fund launching in August 2017.

Mr Champion said: “The Teviot investment process and track record are strong, and its strict views on capacity management very much accord with our own.

"This focus allows Teviot to maintain concentration in its best ideas and gives flexibility in the management of the strategy.

"We are excited about this new addition to the MI Select Managers range and for the benefits this offers to advisers’ clients.”

In contrast to the Miton fund it is replacing the Teviot fund had a good 2019, returning 33 per cent compared with 25 per cent for the sector, and a poor 2020, losing 17 per cent compared with a loss for the sector of 11 per cent. 

Miton has been approached for comment.