Two fund manager moves and a company buy-out
10 December 2018 - It was announced last week that Stephen Snowdon, along with three other members of the fixed income team, have left Kames.
Stephen was manager of the Kames Investment Grade Bond fund, which was on the Chelsea Core Selection. As a result of the manager’s move, the fund has been removed from our list.
Darius McDermott, managing director of Chelsea, commented: “This is a blow for the fixed income team at Kames. Last year, David Roberts and Phil Milburn left to join Liontrust. The news of Stephen Snowdon and three others now leaving is clearly bad news.
“Euan Mc Neill, who was co-manager on the Investment Grade Bond fund, has stayed, so there is some continuity. However, we don’t feel we can keep the fund on the Core Selection and have downgraded it to a generic hold rating.
“Artemis already has a fixed income team, which we rate highly. Managers James Foster and Alex(andra) Ralph have worked together for a long time and co-managed Artemis Strategic Bond (which is on the Chelsea Selection), since launch. James also runs Artemis Monthly Distribution fund with Jacob de Tusch- Lec.
“Given the skill set of Stephen, and the other managers joining Artemis, I would guess they will launch some new funds for them in the not-too-distant future.”
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It was also announced last week that, after 16 years with the company, Rob Burnett, manager of Neptune European Opportunities fund, is leaving at the end of 2018 to set up his own business. Thomas Smith, manager of the firm's Latin America fund, will take over responsibility for the European Opportunities fund.
Commenting on the departure, Darius said: “Neptune has lost a number of fund managers over the past couple of years, so this is not good news. We have downgraded the fund to a generic sell rating.”
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Gresham House has bought the UK funds business of Livingbridge.
Livingbridge is the company responsible for the LF Livingbridge UK Micro Cap and LF Livingbridge UK Multi-Cap Income funds, which are on the Chelsea Core Selection and Chelsea Selection respectively. It is also the manager of the Baronsmead Venture Capital Trusts.
Gresham House plc is an AIM quoted specialist alternative asset manager providing funds, direct investments and tailored investment solutions. The company's expertise includes strategic public equity, private equity (private assets), forestry, renewable energy, housing and infrastructure.
Commenting on the buy-out, Darius said: “The 18 staff from Livingbridge have transferred to Gresham House and I met with Ken Wotton, manager of the two funds, days after the buy-out was announced. He seems very happy with the move and excited about the future.
“As the only change is to the fund names – the investment team and process remain unchanged - we are happy to leave the funds on Chelsea’s lists.”
LF Livingbridge UK Micro Cap has been renamed LF Gresham House UK Micro Cap and LF Livingbridge UK Multi-Cap Income is now LF Gresham House UK Multi-Cap Income.