News that Nigel Thomas is to retire from AXA Investment Managers in March 2019 has prompted fresh questions over whether investors should stick by the AXA Framlington UK Select Opportunities fund or look elsewhere. 
With a career spanning 40 years, Thomas (pictured) has managed the £3bn fund since 2002 and will be replaced on the fund by colleague Chris St John at the end of this year.
During his time on the fund, Thomas has delivered a total return of 400.79 per cent compared with a gain of 256.25 per cent for the FTSE All Share index and a 250.41 per cent return from the average IA UK All Companies fund.
Performance of fund vs sector and benchmark under Thomas
Source: FE Analytics
However, the fund has struggled in more recent years. It was a bottom-quartile performer in both 2016 and 2017.
Year-to-date performance the fund has lost 1.51 per cent, marginally ahead of the sector average’s fall of 1.56 per cent.
New AXA Framlington UK Select Opportunities manager St John will continue “its well-established investment philosophy and process”, according to the firm. Succession planning for St John has been underway for some time, with the group saying in the past that he would take over upon Thomas’ eventual retirement.
St John will continue to manage the AXA Framlington UK Mid-Cap fund and will retain responsibilities as lead manager of the offshore multi-cap strategy AXA WF Framlington UK.
Outgoing manager Thomas said: “I have worked with Chris St John for 13 years and we have very similar investment styles; he and the wider UK equities team have contributed a huge amount to the idea generation that I have implemented as I managed the UK Select Opportunities fund.
“Chris’s experience investing in UK small- and mid-cap companies is particularly relevant as he takes the lead on this fund later this year – these areas have been an important source of alpha generation for the UK Select Opportunities fund, with currently over 50 per cent of the fund invested in these areas of the market.”
Mark Beveridge, global head of AXA IM Framlington equities, said: “At AXA Investment Managers we take succession planning seriously and identified Chris St John as the clear successor for this popular fund back in 2013.
“Not only has he got a great track record as lead manager on the successful AXA Framlington UK Mid-Cap fund, but we launched an offshore multi-cap UK equities fund nearly two years ago that has raised £140m.”
Since launch, the £194.4m AXA Framlington UK Mid-Cap fund has delivered a 156.60 per cent total return, compared with a 74.03 per cent gain for the average IA UK All Companies fund and a return of 69.83 per cent from the FTSE All Share.
Performance of fund vs sector & benchmark since launch
Source: FE Analytics
Meanwhile, the offshore AXA World Funds Framlington UK fund – which launched shortly before the EU referendum – has generated a total return of 28.31 per cent compared with a 31.45 per cent gain for the FTSE All Share benchmark.
Jason Hollands, managing director at Tilney, said while St John’s previous focus has been on the small- and mid-cap space, the launch of the multi-cap fund has allowed him to build a track record of investing across the market cap scale.
He said “They’re clearly looking to have an orderly process to hand over, but he will in time put his own mark on it.
“I think you see that in the fact that the offshore fund they launched two years ago is not a carbon copy of AXA Framlington UK Select Opportunities.
“You can expect there will be some changes in the portfolio to bring it in line with the offshore fund they have been running.”
Hollands said there was no need for investors to react immediately to the departure of Thomas, although such manager changes are often an appropriate time for investors “to step back and reassess whether they continue to hold a fund”.
“AXA Framlington have demonstrated succession planning at its best,” said Darius McDermott, managing director of Chelsea Financial Services. “Back in 2013 they named Chris St John as Nigel's successor when he retired and it is he who will take over the reins of the AXA Framlington UK Select Opportunities fund.”
He added: “We've met Chris a number of times over the past four years and hold him in very high regard. As such we are more than happy to maintain a ‘buy’ rating on this fund during the hand over and when Chris takes over officially in December.”
Rob Morgan (pictured), pension and investment analyst at Charles Stanley, said the firm had been “mindful of the succession planning issue for some time”. 
“It's been well flagged by AXA Framlington and they have done all they can in terms of introducing the succeeding manager and emphasising the team approach,” he said. “We believe the fund will continue to be in safe hands so there is no need for a knee-jerk reaction from existing investors.
“However, Thomas has built up a significant following over the years and much of the track record is attributable to him directly. I would therefore be looking around for alternatives.”
One investor who will definitely remain invested in the fund is Thomas himself.
“I have 70 per cent of my SIPP invested in the fund and plan to keep it there – testament to my faith in Chris to continue to deliver superior returns for clients,” he explained.
“As I always say, ‘things will not necessarily get better or worse – they will become different’, and I am very much looking forward to the next chapter.”