Skandia Investment Group terminates €38m Gartmore mandate
Commenting on the action, James Millard, CIO, Skandia Investment Group said:
“As a result of the developments at Gartmore, we have today terminated our 10-stock €38m mandate run by Roger Guy within our €325m Skandia European Best Ideas Fund. The subsequent eight remaining world class European managers will continue to run the fund. The European Best Ideas Fund remains well diversified and well positioned to continue its strong performance, which puts it in the first quartile of the Morningstar Europe Equity Large Cap Blend peer group and some 10% ahead of the MSCI Europe Index since launch.
“Within our other multi-manager funds, we currently have a further £150m invested across several mandates run by Gartmore which are not directly affected by the announcements today. We will continue to monitor the situation and will not hesitate to take appropriate action should we deem it necessary.”
SIG will immediately allocate the monies equally to the remaining eight managers within in the fund and will consider adding further managers from its ‘reserve bench’ in due course believing it is not necessary to do this immediately as the fund remains well diversified, with over 80 stocks following Roger’s removal. The top ten names account for just over 22% of the portfolio and the largest stock position is just over 4% after the reallocation of Roger’s mandate.