Newman and Katsesis were regarded as two of the firms up-and-coming managers having been given the opportunity to manage the UK special situations and UK dynamic funds respectively in January 2006.
Newman’s fund will now pass to Hilary Aldridge, who works on Ted Scott’s Stewardship growth and Stewardship income funds. She is responsible for mid and small cap selection.
F&C initially launched the fund for Newman, who has since grown the vehicle to £64m recording top-quartile performance in the IMA UK all companies over the past 12 months, returning 13.5 per cent compared to an average of 10.1 per cent.
As for Kaketsis’s £87m UK dynamic vehicle, F&C has decided to have co-managers in the shape of head of equities Peter Lees and head of smaller companies Catherine Stanley.
Stanley is to manage the fund in tandem with the £87m UK smaller companies fund.
Lees will also take responsibility for the 130/30 fund which was launched for the pair only three months ago.
F&C head of communications Jason Hollands says: “We are sad to lose two good managers who in the future would have been very marketable for the firm. However, none of their funds were core to our retail strategy.
“Both were fairly small and included a large amount of internal money, while the 130/30 fund was holding seed money alone. We also feel we have replaced them with two experienced and extremely capable managers.”