Resolution Asset Management has poached three members of Fidelity’s multi-manager team. Chris Ralph, Jason Collins and Simon Mungall are all expected to join the firm in the fourth quarter.
The three men will set up a multi-manager boutique, following Resolution’s established joint-venture model. Richard Skelt, chief investment officer of Fidelity’s multi-manager business, will oversee the running of the Fidelity funds.
Jonathan Polin, sales and marketing director at Resolution, says the boutique’s initial focus will be on launching traditional multi-manager products.
After that, its attention is likely to switch to multi-asset class portfolios. “These are good guys with the intellectual capacity not only to produce plain vanilla funds but also to utilise all the powers of Ucits III,” he adds.
The size of the initial product range will be discussed this week and Polin says it will be seeded internally at launch with a “significant” amount of money.
He adds that he does not expect to recruit any further members for the team. The firm has so far set up three joint-venture businesses – Argonaut, Cartesian and Hexam – with ownership split equally between Resolution and the boutique partners.
Ralph’s Multimanager Income, Special Situations and Growth portfolios have all produced good relative performance according to data from Morningstar.
The portfolios all achieved second quartile rankings in their respective sectors from launch to July 2. The only fund to underperform was Multimanager Equity Income, ranked fourth quartile, although this improves to second quartile when measured over 12 months.
Darius McDermott, managing director of Chelsea Financial Services, says the losses are “not good news but not a disaster” for Fidelity. He says: “Fidelity has a strong multimanager team. Ralph was an integral part of that but the head of the team is Skelt.” In addition to overseeing the funds, Skelt continues to run the Multimanager Distribution portfolio.