Money Management reported recently that Macquarie Funds Management has applied a “unique structure” to its small companies investment team, creating a “boutique within an institution” for the likes of John Bugg, Neil Carter and Michael Ebeid.
Macquarie’s move was reportedly made to minimise staff turnover and ensure the fund manager competes more effectively against the smaller players in the market. The Macquarie Small Companies Fund investment team is hot property, reportedly delivering an average return of 19.3%, around 10% higher than its benchmark.
Staff turnover has been a problem in Australia of late. Ratings agency Standard & Poors highlighted the problem in a recent report on the local market.
We recently reported that fund manager Hunter Hall International has introduced an equity plan, which could see the portfolio managers emerge with more than 10% of the company.