In a reshuffle that sees the current head of global equities Jon Bell join the firm’s multi-asset team, Simon Pryke, currently head of private clients and charities, will assume the CIO position.
Munroe has been with Newton since 1993 when he joined as a global equity manager. He was appointed CIO in 2001, but has now decided he wants to return to managing money in the head of global equities role.
His focus will be on generating better long-term performance in the global equities arena, which he sees as core to the company’s equity offering, according to a spokesperson for the firm.
Munroe will be lead manager on the Newton International Growth Fund and alternate manager on the BNY Mellon Global Equity Fund. He will also manage a number of segregated portfolios.
Lagging performance
In the past three calendar years the £1bn Newton International Growth Fund has underperformed the IMA Global Sector average, and in the past two years it has underperformed the MSCI World index, its benchmark. It is ranked third quartile over one, three and five years and since inception in 1987.
The $232m BNY Mellon Global Equity Fund, which is Dublin-domiciled, has also underperformed its sector average and benchmark over one, three and five years.
Helen Morrissey, chief executive of Newton, said: "We believe that our investment process and philosophy position us well given our expectation of an environment characterised by lower returns and higher volatility. That said our business has grown in size and complexity over the past few years and we need to remain vigilant about the execution of our investment approach."
Munroe’s former CIO role is to be re-defined for Pryke and will focus on the execution of the investment process and effectiveness of the firm’s idea generation, Newton said.
Pryke joined Newton in 1996 as a global research analyst specialising in the financial sector and combined this role with leadership of the global research team for more than six years.
To complete the reshuffle, Caroline Tye will assume responsibility for Newton’s private clients business. She joined Newton in 1998 and is currently head of UK private clients.
