martin
currie
26 July 2010

Martin Currie to close two UK equity funds*
Closures reflect changes in the global economy and the increasing importance of global equities

Following a strategic review of its business, Martin Currie today announced that it intends to close two of its UK equity funds. The UK Growth Fund will be merged into the Martin Currie Global Fund. The UK Equity Income Fund, meanwhile, will be replaced by a Global Income Fund with a broader, global mandate. Both changes are subject to regulatory and shareholder approval and are expected to be completed by October 2010.

Martin Currie remains committed to the UK equity market through the Securities Trust of Scotland, its long-established investment trust. The implementation of changes recommended by the Retail Distribution Review will create a level playing field across product vehicles, raising the profile of investment trusts. Securities Trust of Scotland will therefore become Martin Currie's flagship fund for investors aiming to achieve income and long-term capital growth by investing in UK equities. It will continue to be managed by Ross Watson. Jeff Saunders, manager of the UK Growth Fund will leave Martin Currie later this year.



  • The Martin Currie Global Fund is a high-conviction portfolio of between 45 and 70 of Martin Currie's best global investment ideas. The fund is managed by recent recruit Neil Robson alongside head of equities James Fairweather. . James and Neil have combined investment experience totaling 53 years and are supported by four other members of the global equities team as well as by Martin Currie's regional research team, which consists of 14 portfolio and investment managers, and by a global research team comprised of 17 sector specialists.


  • The new Martin Currie Global Income Fund will be managed by Alan Porter. Alan has 18 years' investment experience and joined Martin Currie in 2008. He is an investment manager in the global team, researching and recommending stocks for the range of global portfolios with assets in excess of £3 billion. Before joining Martin Currie, Alan worked for a hedge-fund boutique, BlueSilver Alternative Ltd. and prior to that, he held portfolio-management positions at Insight Investments, Hill Samuel Asset Management and Old Mutual Asset Managers.


    • We have been running a model portfolio ahead of launch and it currently yields 5%. The new fund will hold between 40 and 60 stocks and, subject to FSA approval, will launch at the end of October.


    Commenting on the proposed changes, Andy Sowerby, Managing Director of Sales, Marketing and Client Services at Martin Currie said:



    "Three major trends have driven this review of our product offering. Firstly, for several years retail and institutional investors have been net sellers of UK equities and net buyers of international and emerging-markets and we believe this trend will continue. As such, we no longer see a need to offer as many UK equity products as we have historically. Secondly, the Retail Distribution Review (RDR) will level the playing field, making investment trusts, such as Securities Trust of Scotland, more attractive and accessible to the IFA market and therefore this becomes our primary UK growth and income offering. And thirdly, the need for income will continue to rise and, in an environment of low interest rates and bond yields, we believe that global equity income will become a major asset class in its on right. Together, these long-term trends acted as a catalyst for this strategic review. The outcome is that we will offer a product ranged focused on future opportunities and the needs of our clients".

    *Subject to regulatory approval




    For further information please contact:

    Joanna Mirea
    Marketing
    Martin Currie
    Tel: 44 (0)131 479 5899
    JMirea@martincurrie.com