The Citywire AAA-rated Dudding will be replaced on the fund by Euro Stars and Citywire Top 1000 star Mark Heslop from 1 January, but will still retain control of his large cap focused Threadneedle European Select fund.
Dudding will take the reins of the Threadneedle (Lux) Global Focus Fund from 1 April 2013, replacing Neil Robson who will continue to run his healthcare and StanLib mandates at the group.
Over the three years to the end of November, Heslop's Threadneedle (Lux)-Pan Europ Smaller Cos AE (MF) Fund has more than doubled the return of his benchmark, posting 54.7% compared to the MSCI Europe Small Cap TR EUR (IN) return of 24.8%.
Fellow star manager Dudding has also posted impressive numbers.
Over five years to the end of November, Dudding's European Smaller Companies fund has returned 47.2% compared to the HSBC Smaller European (ex UK) Companies TR (IN) loss of -4.63%.
Threadneedle's head of European distribution, Dominik Kremer said: 'Both Mark and David are extremely talented managers and have demonstrated exceptional track records of outperformance in the funds they manage.'
'Both managers will remain as part of Threadneedle’s award-winning European equities team, led by Philip Dicken.'