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Two IC Top 100 Fund managers step down

The managers of UK Commercial Property Trust and Investec Global Gold Fund have announced their departures
February 18, 2015

Robert Boag, manager of IC Top 100 Fund UK Commercial Property (UKCM), is to step down at the end of April. The move follows the acquisition of UK Commercial Property's manager, Ignis Asset Management, by Standard Life Investments last year. Mr Boag, who has been lead manager since 2009 and worked on the trust since its launch in 2006, is leaving "to seek other opportunities".

He will be replaced by Will Fulton, who has managed the Standard Life Heritage With Profits Fund £2.3bn real estate portfolio for four years, and will work with Mr Boag until he leaves to try to ensure a smooth handover.

The trust made a net asset value (NAV) total return of 18.4 per cent in 2014, against 17.4 per cent for the IPD Balanced Monthly Quarterly Funds Index. It offers a yield of 4.11 per cent, but is on a premium to NAV of 7.74 per cent.

Winterflood data shows that the trust's share price has outperformed the AIC Property - Direct UK sector average over one year, but lags behind its peers over three and five.

Analysts at Numis say: "From a property perspective UK Commerical Property has delivered another solid performance over its last financial quarter, reflecting yield shift across the subsectors in general and, more specifically, continued recovery in the fund's retail assets which represent 44.5 per cent of the portfolio. Of greater interest to us is the announcement that Robert Boag the manager has resigned. We are keen to understand whether this will result in any significant change in management style of the fund or whether this paves the way to merge the two listed trusts managed by Standard Life including the smaller Standard Life Investments Property Income Trust (SLI) which has a market cap of £194.15m, and UK Commercial Property Trust with a £1.16bn market cap."

Mr Fulton has 27 years' experience in UK and continental European commercial real estate markets, across a variety of different real estate funds.

Meanwhile, Bradley George, head of the commodities & resources investment team at Investec, and manager of IC Top 100 Fund Investec Global Gold (GB00B1XFGM25), has stepped down to become managing director of the company's North America client group. Co-manager Scott Winship is also stepping down.

Mr George will be replaced as manager of Investec Global Gold by George Cheveley from 1 April, and Hanré Rossouw will be co-manager. Mr Cheveley is co-manager on the Investec Global Natural Resources and Investec Enhanced Natural Resources funds, and Mr Rossouw joined Investec Asset Management in 2013 as investment specialist within the commodities and resources team.

As a result, Morningstar has placed its bronze rating on the fund under review until it meets the new manager, and investment research and consultancy Adviser Centre has removed Investec Global Gold from its recommended list of funds.

"Although Mr Cheveley and Mr Rossouw are established members of the team, we believe the importance of this change requires the fund's removal from the recommended list," said Gill Hutchison, head of investment research, at the Adviser Centre.

The fund has beaten the Euromoney Global Gold TR Index and its Morningstar category, Sector Equity Precious Metals, over one, three and five years, albeit with negative returns.