Hugh Yarrow is leaving Rathbones following a restructuring of the group’s fund range.
Yarrow’s £15m High Income fund is being merged into the £32m Blue Chip Income and Growth fund, managed by Julian Chillingworth.
Peter Pearson Lund, Rathbones’ chief executive, says the company decided to merge the funds because of their small size and to consolidate the group’s income offerings.
“High Income has £15m under management and Blue Chip is larger, but they have a similar investment objective,” he says. “They are principally large cap, UK-focused and have a similar yield. In light of present business circumstances you have to become more focused. It gives advisers a clearer choice in terms of equity income.”
Yarrow is expected to take the summer out of the industry to spend time with his family.
Meanwhile, Carl Stick’s Special Situations fund will be merged into the Smaller Companies fund and be re-launched as the Rathbone Recovery fund, focusing on undervalued British stocks. The fund will be managed by Chillingworth and Marina Bond, leaving Stick free to concentrate on managing his £504m Income fund.
Pearson Lund says: “Special Situations has had a difficult time. Performance has not been good in the last year or two. The small-cap area of the market has not done well.”
A more balanced portfolio investing across the market spectrum will be better placed to perform, he adds.
The plans will be completed by May if unitholders approve.