FundQuest reduces Nevsky holding after Thames River deal

FundQuest UK has reduced its holding in the Nevsky Global Emerging Markets fund after Nevsky’s sister company Thames River Capital merged into F&C Asset Management.

Paul Kim, senior portfolio manager, says corporate deals such as the Thames River acquisition “can unsettle fund managers”. He adds Nevsky had been “probably too defensive” over the recent rally.

Within the FundQuest range, Kim transferred assets from Nevsky to the Aberdeen Emerging Markets fund

FundQuest UK runs £110m in its four in-house funds, £58m in five portfolios for Sinfonia Asset Management and £315m in three retail vehicles for Aviva Investors. Total assets under management are roughly £700m.

Within the FundQuest range, Kim transferred assets from Nevsky to the Aberdeen Emerging Markets fund to maintain his emerging markets weighting.

The play includes top 10 positions in the Tokio Marine Far East Equity, Fidelity South East Asia and First State Asia Pacific Leaders funds, depending on the make-up of the individual FundQuest portfolios. (article continues below)

Kim has also sold out of the Marlborough Far East Growth fund, where he says country selection has detracted from the portfolio’s performance, including an underweight in China and Hong Kong.

Other changes include a move from the Baillie Gifford High Yield Bond fund into the Threadneedle High Yield Bond fund after manager Ben Thompson left Baillie Gifford.

The departure of Nick Purves and Ian Lance from Schroders also prompted a shift out of their Schroder Specialist Value UK Equity fund.

Elsewhere in the range, Kim has taken top 10 positions in the BlackRock Gold and General fund off the back of potential money printing by the Federal Reserve and further uncertainty about the value of the dollar, which has prompted many investors to move to gold as the reserve currency of default.

He also took positions in the Old Mutual Corporate Bond and the BlackRock European Dynamic funds.