Merian's Ormiston steps down from large-cap European mandates
Funds to adopt new investment process
Merian Global Investors' Ian Ormiston is stepping down from running the European Equity (ex UK) and European Equity funds, with the mandates set to adopt a new investment process.
Ormiston, who has managed the large-cap funds since the departure of Kevin Lilley in 2017, will focus on running his flagship €257.34m Europe (ex UK) Smaller Companies fund.
The management of the £96.19m European Equity (ex UK) fund and the €29.77m European Equity fund is being handed to the global equities team, headed by Ian Heslop, with immediate effect.
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The large-cap funds will adopt the global equities desk's systematic process. The global equities team considers valuation, quality, price trends, stable growth prospects, investor sentiment and company management when assessing stocks.
However, there will not be any changes to the funds' investment objectives, which is to achieve capital growth.
The global equities team has a significant allocation to European equities in its global equity funds as well as managing regional funds investing in North American and Asian equities.
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Both funds have struggled over the past year, sitting in the fourth quartile. The European Equity (ex UK) fund is down 8.4% compared to the 0.5% fall in the IA Europe Excluding UK sector, while the European Equity fund is down 3.4% versus the 2.5% rise in the IA Eurpope Including UK sector, FE data shows.
Warren Tonkinson, managing director, distribution commented: "With significant experience and success investing in European equities, we believe clients are set to benefit from the global equities team's proven process."
Ian Heslop, head of global equities, added: "Using our adaptable approach we constantly assess market sentiment, flexing our portfolios in order to select the best investment ideas for every economic environment.
"Despite caution towards European equities, we believe there are exciting outperformance opportunities to be found using our process. We look forward to adding value for investors."
