Morley recruits two UK equity managers from PAI

Morley Fund Management has announced the appointment of two high alpha UK equity fund managers. Ian Lancaster and James Follows will join Morley from Progressive Alternative Investments, where they currently manage the 8.5m Elite MoneyGuru Income with Growth unit trust.

The two managers will continue to manage the fund when they join Morley in June, 2006, as its contract will transfer across from Progressive with them. Morley is in discussions with Progressive and Way, who between them own the investment management agreement of the unit trust, to determine the date of transfer to Morley.

According to Morley, there will be no changes in the way the portfolio is managed. The company also has no plans to rebrand the fund at this stage.

Lancaster and Follows have worked together on the fund since February 2002. The fund’s performance since that time has been 117%, against an average fund gain of 49% in the sector, according to Morley.

In addition to leading the MoneyGuru Income Growth fund, Lancaster will become deputy manager of the Norwich UK Equity Income fund, of which Dan Roberts is the primary manager. At this stage there will be no extra responsibility for Follows.

The appointment of Lancaster and Follows adds to the earlier appointment of Mervyn Douglas and Chris Murphy. It brings the number of newly created high-alpha positions within the Morley UK equity team to four in the past two months.

Lancaster also managed Stockbridge, which is a small and mid-cap equity long/short hedge fund. Prior to that, he was head of investment at MG Capital.