RSA fund managers to run isis' uk, european, us, emerging markets and pacific equities funds
Fund managers drawn from the RSA Investments team will take the lead roles in managing the main UK, European, US, emerging markets, Pacific equities and fixed interest funds in the Isis fund range.
The range represents the main funds that Isis, which is composed of the fund ranges of Friends Ivory & Sime and RSA Investments, merged a month ago to create a UK asset management house with around £70bn in funds under management.
Robert Talbut, chief investment officer at FIS, said as well as providing a large number of desk heads and lead fund managers, it is the pragmatic growth investment style of RSA Investments that will be adopted by the combined group. Talbut said the more dogmatic FIS growth style has failed to produce convincing returns in the difficult value-biased markets of the past two and a half years.
The named managers include Mike Felton, lead manager of RSA's UK Equity and focused UK Prime funds. He will take the helm of the Isis UK Equity and UK Prime funds, rebrands of the portfolios he already runs at RSA.
Davina Curling, also of RSA, will lead the European and European Prime funds, while RSA's Andrew Hudson will manage the Isis North American fund.
James Foster of RSA will head up Isis High Income and Isis Extra Income, currently both RSA funds, while RSA's Fatima Luis will manage the Isis Maximum Income fund.
Other RSA managers to lead funds will be Mike Hanbury-Williams on Isis Pacific Growth and Pinakin Patel on Isis Emerging Markets, both areas in which FIS has no Isis-branded offerings. Of the 14 funds, only four are managed by FIS managers: Isis Global, the two Isis multi-manager funds and Isis Japan.
The multi-manager funds will be created from the merger of a number of existing Isis funds and the two fettered fund of funds RSA currently manages: RSA Managed and RSA Portfolio.
Despite the naming of managers for 14 funds, there are obvious product gaps and question marks remaining over many more, including the UK Equity Income and UK Smaller Companies offerings. It seems likely, however, that FIS managers Roger McNair and Bill Brown will take the helm on these respectively.
It is only a matter of time before further lead managers are named but contract talks continue this week and, until they are resolved, the group will not unveil the rest of its team.
No information has yet been announced about the form the merged FIS and Isis tracker fund ranges will take. There will be no alterations to the Friends Provident branded range of funds until the second quarter of next year. The range, which is currently being converted into an Oeic, is to be put under the Isis banner and particular focus will fall on the poor performance of the UK funds in the range.
They will continue to be distributed under a tied agent agreement with Friends Provident.
Distribution through the intermediary channel was settled earlier this year when the intermediary sales forces of FIS and RSA were combined under Mike Lynch, director of intermediary sales, and John Yule, director and head of strategic development.
From 1 October, the annual management charges (AMC) on a number of funds in the Isis and RSA ranges will be raised. The changes in AMC affect a number of equity funds in the RSA range, excluding the prime funds, which will see a marginal AMC rise from 1% to 1.25%.
The initial charges on all Isis funds will rise to 5%. There are no changes to the charges on the Friends Provident range. Commission levels of 3% initial and 0.5% trail remain unchanged.