Britannic Asset Management has restructured its pan-European investment team following recent underp...
Britannic Asset Management has restructured its pan-European investment team following recent underperformance.
Peter Reid, already chief investment officer at Britannic, will take on the role of head of UK equities. Until now Margaret MacLaren has been director of pan-European equities with specific UK investment responsibilities.
MacLaren will now take a more active interest in investment in continental Europe. Reid said the changes were necessary to get performance back on track.
Both Britannic Balanced Growth and Britannic UK General are frAA rated, but have underperformed their peers in the UK All Companies sector over the past year to 3 May on an offer to bid basis.
Balanced Growth is ranked 253 out of 282 and UK General is ranked 269.
Reid will provide a strategic overview for the UK team and will also try to build confidence in the team.
He said: "Our strengths in the past have been our research and investing because of fundamentals. Particularly this year a lot of the problems have been with us doing momentum investing and not getting our timing in and out of stocks right."
In addition Reid plans to increase the use of benchmarking. From now on not only will the team compare performance to relevant indices but also to the competition, according to Reid.
He added: "We will also focus on risk management. Earlier this year we brought in Paul Hughes who was head of our middle office function. He will provide 'what if' analysis for our portfolios."
Reid was appointed CIO in the first quarter of 1999 after being head of UK equities. At the same time MacLaren was appointed director pan-European equities. The group went for a pan-European approach because it thought the UK would adopt the euro.
Reid added: "The rise of globalisation means the pan-European approach has been bypassed. Sectors such as technology, telecoms and pharmaceuticals need to be analysed from a global basis. Cooperation between our European and UK teams will still exist on a limited number of sectors, such as building and construction."
To allow Reid to take an active role on the UK desk he has relinquished some of his other responsibilities.
David Sutherland, investment director fixed interest, will oversee the property and risk management teams.
With Sutherland taking on more responsibilities in this area Joe McKenna has been appointed head of fixed interest.
Until now there has not been a head of fixed interest although Sutherland has been overseeing the team.
McKenna is currently fixed interest fund manager at the group. Andrea McNee, investment director, will continue in her role of having responsibility for US, Japanese and Pacific Equities.