UK - Investec Asset Management says five equities managers have left after their request for an equity stake in the business was refused.

“Two members of the UK Equity team, Michael Rimmer and Jeremy Rigg, and three members of the Global Equity team, Nick Mottram, Chris Carter and Nigel Dutson have left Investec Asset Management,” the firm said. They were involved in the Investec 4 Factor equity product.

“Unfortunately Investec felt that it could not accommodate the desire of the above mentioned individuals to obtain equity in this product set,” a statement said. “This would not have served the best interests of clients, shareholders or the rest of the team.”

“Clearly this is a disappointment but the managers’ demands for an equity stake at product level are not compatible with our business model,” said Investec chief executive Hendrik du Toit.

“The aspirations of our fund managers have to be aligned with those of our clients, shareholders and other staff. In thirteen years we have built a business from scratch to £20 billion under management and we must remain committed to our core principles and take a long term view.

“Great businesses are never built on compromised foundations. Our position is clear: we remain fully committed to the Investec 4 factor equity process. We constantly review our requirements and will recruit accordingly.”

Investec said the remaining 17 members of the team would take on their responsibilities.

“The 4 Factor UK equity team is strongly resourced with a deep talent pool and succession to handle this change. They will continue to use the proprietary screening tools that combine highly automated quantitative techniques with fundamental research.”