First State changes

Popular fund providers First State Investments have recently announced that, as of 1st July, the business will divide into two investment teams – the Edinburgh-based Stewart Investors and Hong Kong-based First State Stewart Asia.

This change will allow each team to move forward as smaller, more flexible businesses. Whilst both teams will remain part of the wide First State Investments business, and there will be no change to any of the funds' investment processes, research ideas will no longer be shared between the teams.

First State is reported to have said that the split will have not affect capacity or lead it to reopen funds in the short term.

The changes will, however, see David Gait, Worldwide Sustainability manager, replace Richard Jones as co-manager on Angus Tulloch's Asia Pacific Leaders fund. Jones will now be part of the First State Stewart Asia team.

Jonathan Asante's role, as part of Stewart Investors, will see him relocate to the UK in 2015 or 2016 as a result.

No member of either team will depart as a result of the changes.

Stewart Investors will include all members of the group 's GEM/Worldwide and Sustainability teams, as well as Tulloch, Chris McGoldrick, Douglas Ledingham and Tom Allen from the Asia Pacific group.

First State Stewart Asia will include Martin Lau's Greater China fund, Asia Equity Leaders, single country mandates and the Scottish Oriental trust.
    
Darius McDermott, managing director of Chelsea and FundCalibre, said: “Splitting a specialist investment team in two is an unusual move, and putting Chinese walls in place between them even more so.

“That said, the split, as it has been made, seems logical in terms of personnel and the lead managers on our Fund Calibre Elite Rated funds will not change. As such, the funds will retain their Chelsea buy ratings, but we will be keeping a watching brief on the situation. I wouldn’t be surprised if a further distancing of the teams in some way occurs in the future.

“In the meantime, we will be keen to meet the two teams after 1st July when the split has occurred, to reassure ourselves that the smaller teams and resources and new ‘mini’ cultures are working effectively.”