MPS managers Simon Doherty and Antony Webb have introduced a modest allocation to the Artemis US Smaller Companies fund within their US equity ‘Building Block’ – the MI Quilter Cheviot North American Equity Fund.

The decision to initiate a dedicated investment in US ‘small cap’ stocks this April comes after a prolonged, intentional ‘underweight’ allocation to this segment of the market.

A fall in interest rates later this year would result in an environment which tends to favour smaller, domestically focused businesses, as does a recovery in consumer confidence. Furthermore, Doherty and Webb believe recent government-led initiatives, such as the Inflation Reduction Act, are likely to benefit domestic companies at a time when valuations in these firms look particularly attractive versus the broader market.

Meanwhile, in its US exposure, Quilter Cheviot has also topped up its positions in Nvidia and Meta, while at the same time reducing holdings in Alphabet and food giant Mondelez.

Elsewhere across the strategies, infrastructure has been selectively added to as it is an asset class that the team expects to continue to provide a number of opportunities for long-term investors. Finally, within the Quilter Cheviot European Equity Fund, there were small adjustments, as existing bank and energy positions were added to, whilst consumer staples and real estate names were trimmed.

Quilter Cheviot said its MPS utilises a “unique” Building Blocks structure – a range of funds designed and actively managed by Quilter Cheviot for use within its MPS. Each Building Block fund is designed to provide specific geographic or asset class exposure, and invests in a combination of direct equities, bonds or external fund holdings.

Antony Webb (pictured), head of MPS Investment Funds at Quilter Cheviot, said: “While interest rate cut expectations have certainly come down since the start of the year, the market is still looking at one or two cuts for this year before falling further next. As such, we feel it is prudent to begin adding to companies that we believe will have quite a strong reaction when these rate cuts arrive.

“Despite a period of sustained relative weakness versus large-caps, US small-caps look particularly well primed, with the US economy holding up well and a backdrop of very accommodative federal spending, regardless of who is in charge.

“The Artemis US Smaller Companies fund we have added to our North American Building Block offers a clear, consistent and historically successful approach to ‘small cap’ investing that is complementary to our other, largely stock-specific ideas within the allocation.

“We also continue to see good value in selective alternatives, particularly listed infrastructure. These investment trusts have been at a wider than usual discount in the past 18 months and although they have narrowed recently, we continue to see an attractive long-term return profile from these holdings.”

Objectway will help Kinsted Wealth manage their business in a fully integrated and centralised manner, ultimately accelerating the growth of its discretionary business and external advisor network.

This new client partnership follows the recent addition of leading digital wealth solutions provider Nest Wealth to Objectway, building on the momentum of the Group’s active expansion and operational capability in Canada.

Objectway’s digital front-end will deliver improved client experience for Kinsted Wealth by providing investors with omnichannel interaction, client engagement and front-office productivity, supported by an online portal and mobile apps for investors.

This solution will enable Kinsted Wealth to improve client experience with a 360° client view and a platform that automates information delivery and provides actionable insights.

By relying on Objectway’s investment management solutions, Kinsted Wealth will be able to centrally manage client portfolios and their internal pool funds for their discretionary business.

Objectway’s discretionary portfolio management will enable straight-through processing for real-time order execution, continuous and automated monitoring of portfolio compliance at all levels, and mass rebalancing of funds and client accounts for Kinsted’s more than $1bn in assets under management.

Objectway’s solutions will also provide unified and centralised data management and storage, including the migration of historical performance trends. The entire platform will be hosted on Objectway’s Canadian private cloud data center.

“In order to deliver bespoke wealth management through our transparent and highly personalized discretionary wealth management services, we needed to focus on our core business, whilst relying on a fully integrated client and investment management solution from a trusted partner. Objectway demonstrated they had the right capabilities, data security, market knowledge and experience to support our business growth.” said Adam Payne, President & CCO at Kinsted Wealth.

“We are delighted to have been selected by Kinsted Wealth to enable them to scale their business while optimizing and streamlining their operational model through integrated client and investment management solutions that can be easily integrated with their existing business ecosystem, including clients, external advisors and custodians,” said Kurt Vanhee, managing director Continental Europe and North America at Objectway.

Morgan will be based in California and report to Alastair Barrie, Managing Director for North America, who leads the four-strong team that also includes Adam Schneider and recent hire David Smithwick

He has over 25 years of institutional investment experience, most recently as Vice President and Regional Director for Dimensional Fund Advisors, the $677bn asset management firm. Prior to Dimensional Fund Advisors, Morgan spent 11 years at Wisdom Tree Investments where he covered firms on the west coast of America, including RIAs and family offices.

This strategic hire is part of Polar Capital’s broader strategy to strengthen the firm’s global footprint and enhance client relations and partnerships in North America. The company’s US sales team has grown to meet the increased interest in Polar Capital and its fund range and now comprises:

• Alastair Barrie, Managing Director of Polar Capital North America, joined in June 2019 to lead the company’s business development in the region. He has over 30 years of experience in asset management distribution in both wholesale and institutional markets and supports clients in the North East.
• David Smithwick, Business Development Director,  joined earlier this year. Based in Tennessee, he has over 20 years of experience and is responsible for supporting institutional clients and consultants in the South East.
• Adam Schneider, Business Development Director, joined Polar Capital in 2021. Based in Tennessee, he has over 12 years of experience and is responsible for supporting institutional clients and consultants in the Midwest.
• Morgan Lee, Business Development Director, based in California has over 25 years of experience and will support both institutional clients and also RIAs on the west coast and beyond.

Alastair Barrie, managing director, North America said: “Polar Capital’s heritage is based on forming strong relationships with investors and their advisers. We have been hugely successful in delivering differentiated and strongly performing strategies to our clients and have seen increased demand for our existing funds.

“As we build further capabilities in the US, we need experts to work in partnership with our clients to provide the support they need and I am very pleased to welcome Morgan to the team. His extensive knowledge, experience and relationships will help us continue to grow the business and see even more success in the US market.”

Iain Evans, global head of distribution at Polar Capital, said: “We continue to extend our reach in the US, which is a key market for us. This senior appointment reflects the region’s importance to our growth plans and our ongoing commitment to provide our US clients and prospective clients with exceptional service and support.”

Morgan Lee, director, business development, said: “As I step into my new role at Polar Capital, I am looking forward to focussing on helping institutional clients and RIAs. My commitment is to provide them with unparalleled support and innovative investment solutions that cater to their needs. Our goal is to build lasting relationships based on trust and mutual success, ensuring our clients can navigate the complexities of the markets with confidence. Our business has a clear strategic vision and I look forward to working alongside Alastair and his team to help grow the business.”

The acquisition of AIG Life UK was first announced on 25 September 2023 and signals a further consolidation of the number of protection players in the market.

Amanda Blanc, group chief executive officer of Aviva, said at that time: “This acquisition brings significant strategic and financial benefits to Aviva. It strengthens our prospects in the highly attractive UK protection market and continues our progress in repositioning the Group towards capital-light growth. We look forward to welcoming our new customers and colleagues to Aviva.”

Corebridge Financial separately announced yesterday (9 April) that it had completed the previously announced sale of its UK life insurance business (operating as AIG Life Limited) to Aviva plc.

“The transaction allows Corebridge to focus on Life & Retirement products and solutions in the United States”, it said.

With more than $380bn in assets under management and administration as of December 31, 2023, Corebridge Financial is one of the largest providers of retirement solutions and insurance products in the United States.

American International Group provides insurance solutions that help businesses and individuals in approximately 190 countries and jurisdictions protect their assets and manage risks through AIG operations and network partners.