The money is held within the company’s in-house funds team Omnis Investments, which manages £6 billion on behalf of clients advised by Openwork financial planners.
In early 2017 Omnis said that while it was ‘confident’ in the Schroders' abilities, it nonetheless felt ‘the fund managers were not demonstrating as much conviction in the portfolio as we would have liked and they weren’t making full use of the risk allowance we had given them’.
‘We are thrilled to have been selected to run the Omnis UK Equity fund,’ said Morton. ‘The fund will be managed as a core fund, drawing on the experience of the whole Franklin UK equity team.’
The capital will be invested alongside existing strategies. The largest fund managed by Morton’s team, the £513 million Franklin UK Equity Income fund, has returned 24.4% over the last three years versus a peer average of 17.4%.
Omnis chief investment officer Toni Meadows (pictured) said: ‘We see the team at Franklin Templeton as offering a genuine core approach to investing in UK equities, having also built a formidable reputation of expertise in medium and smaller company stocks; this is a real stand-out feature compared to rival managers in the UK equity sector, and we think they will do an excellent job.’
The division was launched just over four years ago and currently runs 10 single strategy funds.