Downgrades
AMP Capital Global Real Estate Securities – Neutral
Fatima Khizou
The high level of turnover in staff and responsibilities in recent years has seen us lower our conviction in this team and strategy. In early 2014, senior team members Tom Walker and Hugo Machin departed from the team, resulting in no primary coverage in Europe.
In May 2015, Bob Thomas, co-head of North America, left the group, followed a few months later by an analyst covering the region. Despite the introduction of an improved remuneration structure aimed at addressing key staff departures across AMP Capital, changes have continued to be a feature here with the latest at the leadership level following the promotion of Matthew Hoult to the newly created role of head of global listed real assets in November 2016.
James Maydew who became co-manager on the strategy in March 2016 took over sole portfolio management and team head responsibilities at that time. While Maydew has been part of the team since 2007, his track record as an individual portfolio manager in his own right is limited, and he takes over at a challenging time for the strategy given recent underperformance. These persistent changes have weakened this strategy relative to other offerings in the space.
BlackRock UK Income – Neutral
Peter Brunt
Having joined Blackrock in September 2013 to help refocus and lead the UK equity income team, Mark Wharrier left the group on 5 July 2017 in order to pursue another career opportunity. His two comanagers, Adam Avigdori and David Goldman, remain in place on the fund. Wharrier brought structure to the investment approach and ensured that there was balance across the three comanagers.
We consider his exit as a loss to the fund and, while we will be monitoring the progress of the Avigdori and Goldman closely, for now our level of conviction has diminished. The Morningstar Analyst Rating is therefore lowered to Neutral.
