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Michael Chalmers
Posted: 29 April 2024 13:54:29(UTC)
#1

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I know quite few of us invest in these funds and there has been previous discussion about a "corporate lifecycle" strategy being applied. Can the managers take that with them?


RLAM’s head of equities leaves to start new venture with four colleagues
29 April 2024

Alpha Managers Peter Rutter, Nico de Walden and James Clarke are setting up shop together, having generated top-quartile returns for RLAM.


By Emma Wallis,

News editor, Trustnet


Peter Rutter, head of equities at Royal London Asset Management (RLAM) and an FE fundinfo Alpha Manager, is leaving to start his own business. Four RLAM equity fund managers are joining him: Alpha Managers Nico de Walden and James Clarke, along with Chris Parr and Will Kenney.

Piers Hillier, RLAM’s chief investment officer, will take over from Rutter at the helm of the global equity team. In this capacity, he will be supported by three senior colleagues: Matt Burgess, head of quant strategies; Richard Marwood, co-head of UK equities; and Mike Fox, head of sustainable.

Rutter, Clarke and Kenney manage the £4.9bn Royal London Global Equity Diversified fund and the £803m Royal London Global Equity Select fund. Both funds have generated top-quartile returns over one, three and five years. They have FE fundinfo Crown Ratings of four and five, respectively, in recognition of their high alpha, low volatility and consistently strong performance.

De Walden manages the £1.2bn Royal London Global Equity Income fund, which is a top-quartile performer over one and three years with a five-crown rating (the top score), while his £1.2bn UK Equity Income fund is top quartile over one, three and five years with a four-crown rating. He also runs the Royal London £1.3bn UK Dividend Growth fund, which is a top-quartile performer over one and five years but second quartile over three years.

Parr runs the £369m Royal London US Growth Trust, another fund that is top quartile over one, three and five years, as well as RLAM’s US equity strategy.

RLAM announced leadership changes to some of its funds as a result of the departures.

Hillier will take over the popular Global Equity Diversified fund from Rutter, Clarke and Kenney, with Burgess as his deputy. The Global Equity Select fund has been handed to Fox, with George Crowdy as back-up. A full list of manager changes is below.


Hans Georgeson, RLAM’s chief executive, said: “We remain committed to offering a first class equity capability and will continue to invest in the team. Piers brings huge experience to the leadership of our global equities capability, supported by an extremely talented team that also bring many years of expertise in equity markets.”
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Jesse M on 29/04/2024(UTC), smg8 on 29/04/2024(UTC), Dentmaster on 29/04/2024(UTC), Guest on 29/04/2024(UTC), D Bergman on 29/04/2024(UTC), Sheerman on 29/04/2024(UTC), Peter61 on 29/04/2024(UTC), stephen_s on 29/04/2024(UTC), Raj K on 29/04/2024(UTC), wydffart on 29/04/2024(UTC), S Dobbo on 29/04/2024(UTC), Bob Macondale on 29/04/2024(UTC), Jay P on 29/04/2024(UTC), john brace on 29/04/2024(UTC), Isaac J on 29/04/2024(UTC), Trudy Scrumptious on 29/04/2024(UTC), Rocky_W on 29/04/2024(UTC), Mr Spock on 30/04/2024(UTC), Guest on 30/04/2024(UTC), BigLoss on 30/04/2024(UTC), Jeff Liddiard on 30/04/2024(UTC), Helen L on 30/04/2024(UTC), Harland Kearney on 01/05/2024(UTC), Guest on 02/05/2024(UTC), The Pensioner on 02/05/2024(UTC), Silas on 02/05/2024(UTC), bill young on 03/05/2024(UTC), dlp6666 on 06/05/2024(UTC), Jay Mi on 11/05/2024(UTC), Moose on 13/05/2024(UTC), philip gosling on 01/06/2024(UTC)
smg8
Posted: 29 April 2024 14:14:50(UTC)
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Ah damn!

That's out of nowhere, though completely understandable - they've run this strategy with this approach for 20+ years to great success and can make serious money doing it for themselves.

Asset Management arms of insurance firms are notorious for comp being a challenge, these guys have raised billions in assets so makes complete sense why they'd go do it themselves.

That leaves me in a real quandary - there's no other fund like Global Equity Select, it's something genuinely differentiated. I bought it over 3 years ago and it's been superb, whether the market has been going up or down. It's a key/core holding for me.

It does again show the issue with choosing active funds - buy a bad one it'll close, buy a good one it'll get too big and stop outperforming, buy a really good one and the managers will leave etc etc.

The appeal of this strategy in my opinion is the management team, the track record etc. Initial reaction is why would I hold it with a different manager?

The people replacing on the strategy are a UK fund manager with no international experience, a guy who heads up passive and quant strategies, and a guy who is very much a quality growth manager. Completely different profiles to the team leaving.

In my opinion none can replicate what Rutter et all have done, and suspect that even if there are elements of the previous managers processes which remain at Royal London, the intellectual property that makes this a success has left the room.

Sadly I think this means a sell from me....
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Dentmaster on 29/04/2024(UTC), Guest on 29/04/2024(UTC), Tim D on 29/04/2024(UTC), Mr Spock on 29/04/2024(UTC), D Bergman on 29/04/2024(UTC), Newbie on 29/04/2024(UTC), Sheerman on 29/04/2024(UTC), stephen_s on 29/04/2024(UTC), Dan L on 29/04/2024(UTC), S Dobbo on 29/04/2024(UTC), Jay P on 29/04/2024(UTC), Jesse M on 29/04/2024(UTC), Trudy Scrumptious on 29/04/2024(UTC), Paperwork on 29/04/2024(UTC), Helen L on 30/04/2024(UTC), J-san on 01/05/2024(UTC), Harland Kearney on 01/05/2024(UTC), Guest on 02/05/2024(UTC), bill young on 03/05/2024(UTC), dlp6666 on 06/05/2024(UTC)
Mr Spock
Posted: 29 April 2024 14:26:35(UTC)
#6

Joined: 19/07/2019(UTC)
Posts: 328
I suspect the new fund managers will first do nothing and let the funds run on their current holdings. The real test will be the perf in 2H24. Hold for me, but under watch.

Didn't RLAM run a Quilter fund as well? It may also be impacted.
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Dentmaster
Posted: 29 April 2024 14:32:01(UTC)
#3

Joined: 23/01/2021(UTC)
Posts: 440
smg8;304089 wrote:
Ah damn!

That's out of nowhere, though completely understandable - they've run this strategy with this approach for 20+ years to great success and can make serious money doing it for themselves.

Asset Management arms of insurance firms are notorious for comp being a challenge, these guys have raised billions in assets so makes complete sense why they'd go do it themselves.

That leaves me in a real quandary - there's no other fund like Global Equity Select, it's something genuinely differentiated. I bought it over 3 years ago and it's been superb, whether the market has been going up or down. It's a key/core holding for me.

It does again show the issue with choosing active funds - buy a bad one it'll close, buy a good one it'll get too big and stop outperforming, buy a really good one and the managers will leave etc etc.

The appeal of this strategy in my opinion is the management team, the track record etc. Initial reaction is why would I hold it with a different manager?

The people replacing on the strategy are a UK fund manager with no international experience, a guy who heads up passive and quant strategies, and a guy who is very much a quality growth manager. Completely different profiles to the team leaving.

In my opinion none can replicate what Rutter et all have done, and suspect that even if there are elements of the previous managers processes which remain at Royal London, the intellectual property that makes this a success has left the room.

Sadly I think this means a sell from me....

I assume it will also effect Quilter Global Unconstrained Equity Fund
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smg8
Posted: 29 April 2024 14:35:02(UTC)
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I imagine Quilter will hand the mandate for Global Unconstrained over to Peter Rutter's new shop, when up and running. That being said, Quilter may have some rules about funds having to have x amount track record before they can invest in them.

The reality of these situations is they will have some assurances over which assets they can take with them before jumping ship!

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Dentmaster on 29/04/2024(UTC), dlp6666 on 06/05/2024(UTC)
D Bergman
Posted: 29 April 2024 14:46:00(UTC)
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Smg8,

I recall that you, after some years of playing the field with active funds, had decided to settle down with passives.

Have you reverted to actives or are they just a satellite "fun" portfolio?

None of my business, of course, but just curious.
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1 user thanked D Bergman for this post.
Guest on 05/05/2024(UTC)
David JP
Posted: 29 April 2024 14:47:40(UTC)
#10

Joined: 30/06/2013(UTC)
Posts: 37
Presumably this has similar (adverse?) implications for the Global Equity Income version of this Royal London strategy, given that Niko De Walden is among those leaving, and that at first glance those being appointed from within RLAM as replacements do not have recent global income fund management experience, unless I'm mistaken?
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smg8
Posted: 29 April 2024 14:57:14(UTC)
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Joined: 26/04/2020(UTC)
Posts: 3,384

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Was thanked: 13382 time(s) in 2767 post(s)
D Bergman;304096 wrote:
Smg8,

I recall that you, after some years of playing the field with active funds, had decided to settle down with passives.

Have you reverted to actives or are they just a satellite "fun" portfolio?

None of my business, of course, but just curious.


Yep, I switched around 30-35% of my portfolio into passives a couple of years ago, but maintained positions in a select few active funds which I've bought and held (as opposed to chopped and changed like days of yore!).

I've sought actives not to "outperform", but to reduce my risk i.e. ones I have felt offer me some downside protection. This was one of them and has worked well in that regard, though has also unexpectedly massively outperformed.
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3 users thanked smg8 for this post.
Dentmaster on 29/04/2024(UTC), D Bergman on 29/04/2024(UTC), Helen L on 30/04/2024(UTC)
Newbie
Posted: 29 April 2024 14:58:33(UTC)
#4

Joined: 31/01/2012(UTC)
Posts: 3,833
deleted - just seen the post re quilter above and this was what I was going to raise
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Mr Spock
Posted: 29 April 2024 15:49:14(UTC)
#5

Joined: 19/07/2019(UTC)
Posts: 328
smg8;304089 wrote:
Ah damn!

That's out of nowhere, though completely understandable - they've run this strategy with this approach for 20+ years to great success and can make serious money doing it for themselves.

Asset Management arms of insurance firms are notorious for comp being a challenge, these guys have raised billions in assets so makes complete sense why they'd go do it themselves.

That leaves me in a real quandary - there's no other fund like Global Equity Select, it's something genuinely differentiated. I bought it over 3 years ago and it's been superb, whether the market has been going up or down. It's a key/core holding for me.

It does again show the issue with choosing active funds - buy a bad one it'll close, buy a good one it'll get too big and stop outperforming, buy a really good one and the managers will leave etc etc.

The appeal of this strategy in my opinion is the management team, the track record etc. Initial reaction is why would I hold it with a different manager?

The people replacing on the strategy are a UK fund manager with no international experience, a guy who heads up passive and quant strategies, and a guy who is very much a quality growth manager. Completely different profiles to the team leaving.

In my opinion none can replicate what Rutter et all have done, and suspect that even if there are elements of the previous managers processes which remain at Royal London, the intellectual property that makes this a success has left the room.

Sadly I think this means a sell from me....


If you search for potential substitutes, the FT has a good Risk tab under Markets/Data/Funds. They plot std dev and returns over 3 years. Caveat: I don't know how reliable are the underlying data, however the closest fund on risk is Fidelity Index World...but its perf has been significantly lower than RLGES.
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2 users thanked Mr Spock for this post.
smg8 on 29/04/2024(UTC), Jeff Liddiard on 30/04/2024(UTC)
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