Swip has restructured its £1.1 billion Multi-Manager UK Equity Income portfolio, bringing in Threadneedle, Neptune and PSigma and dropping Henderson, Jupiter and Rensburg.
Nick McLeod-Clarke at BlackRock is the only equity income manager to survive the reshuffle. The Threadneedle mandate will be run by Leigh Harrison, the Neptune mandate by Robin Geffen and the PSigma mandate by Bill Mott.
The reshuffle has been prompted by Swip moving the management of its multi-manager range in-house. It had been managed by Russell Investments.
The managers who have lost mandates are Andy Jones and Graham Kitchen at Henderson, Ben Whitmore at Jupiter and Colin Morton at Rensburg. The moves were made in July.
Lyndon Gill, the investment director at Swip with responsibility for the fund, says: “It’s part of a wider strategy focusing on Swip’s strengths as a multi-manager and our relationships with some of the managers.”
Gill said the decision to replace managers was based on relationships, rather than performance and was not a reflection on the quality of the fund managers and groups involved. (article continues below)
According to Gill, each of the managers contributes something different to the portfolio, with each running a distinct strategy.
Harrison manages a top-down/bottom-up blend. Mott takes contrarian macroeconomic positions. McLeod-Clarke employs a barbell approach, with some companies chosen primarily for their strong performance prospects and others for their high yields. Taken as a whole, Geffen’s high-conviction investments aim to grow their dividend faster than inflation.
The managers will all run the money in line with their unit trusts or Oeics, except Geffen, who will run a 40-stock blend of his Income and Quarterly Income funds.
The managers will each be given a 25% allocation of the fund and will be regularly rebalanced if they dip below or exceed that amount. The total expense ratio (TER) of the portfolio will not change as a result of the move.
Performance on the fund has trailed that of the wider sector over one, three and five years, according to Trustnet. The fund has returned 13.6% over the five years to October 7, compared with an average return of 19.6% from the wider sector.
Over five years, the Threadneedle UK Equity Income fund is 11th out of 78 funds in the UK Equity income sector with a return of 36.1%, while the Neptune Income fund is 13th with a return of 35.3%. The BlackRock fund is 14th with a return of 35.1%. The PSigma fund does not have a five-year track record, but over three years it is 68th out of 89 funds in the sector, having suffered a fall of 12.8%.