As the Henderson Group acquisition of New Star Asset Management progresses, details of Henderson’s plans for NSAM’s international operations are emerging.
Because Henderson has its own European, Asian and North American sales forces, the majority of New Star International’s overseas staff are not being retained. And five of its Dublin-domiciled Oeics – considered too small by Henderson to be viable – will close as of 9 May.
These are New Star Pan-European Equity, Global Emerging Markets, Japan Recovery, New Star US Opportunities and Strategic Government Bond funds.
But 12 funds from New Star’s international range have been moved into the Henderson stable, and a number of key NSI executives have also relocated to Henderson’s London headquarters.
These include James Tothill, associate director of international life companies at Henderson; Caroline Egan, who is involved in technical support and marketing on Tothill’s team; and Mark Skinner, who is heading up UK retail sales at Henderson.
Philip Goldsmith, who had been managing director of New Star International, has transferred to Henderson on a temporary basis, to help out with the transition, he said. His departure date has yet to be determined.
Moving on
Some of those from the International operation who have who have not made the move to Henderson include James Rushmere, who had been international sales manager based in London. He is now a London-based client relationship manager for the UK and Europe for an asset management arm of European Finance House, which is owned by Qatar Islamic Bank.
Francis Leach, who had been director of sales for Asia Pacific at New Star International, is taking a post with an undisclosed international private bank, where he will continue to be based in Hong Kong.
Deal completed
Details of Henderson’s plans for New Star International emerged after the acquisition of the boutique asset management was finally completed last month in a debt-for-equity swap purchase worth £107m.
At its peak, New Star, founded in 2000 by John Duffield, who previously launched and sold Jupiter Asset Management, was a fixture on the FTSE 250 index, after floating on Aim at 225p a share in 2005. In the end, though, the shares left the market in early 2009 for an ignominious 2p each. Its demise followed high profile problems financing its debt, fund performance issues and investor redemptions.
International life operations
Like New Star, Henderson has its own overseas operations, and the acquisition has been seen by market observers mainly as a chance for Henderson to boost its footprint in the UK retail market.
However, the take-over also gives it a chance to expand its distribution through international life companies, sources familiar with both companies’ operations say.
For those on New Star’s international life team who have moved to Henderson, this has meant an expansion in the range of internationally-registered funds they are able to market, and access to a brand name that in many markets is much better known.
Founded in 1934, Henderson Global Investors had assets under management of almost £50bn at the end of December.
“Henderson gives us a great opportunity to leverage off its global presence, using some of our New Star relationships and our approach to relationship management,” says Tothill.
Henderson spokeswoman Laura Cook stresses that “things are at a very early stage in the acquisition” and that there could be further changes to the Henderson plans for New Star entities down the road.
Any re-branding of New Star’s international funds business is unlikely, Cook adds, though she says there are plans now to re-brand Henderson’s UK retail business to Henderson New Star, with a campaign beginning in late May.
Henderson’s Horizon Sicavs
Henderson’s own international business consists of a Luxembourg Sicav range of funds, sold under the Horizon name by a sales force operating throughout Europe, the Middle East and Asia. It had sales of £2.3bn at the end of 2008, and according to Cook, has seen net inflows so far this year.
It also has a US mutual fund range, sold through the company’s Chicago offices, which last year also saw sales of around £2.3bn.
NEW STAR FUNDS HENDERSON IS KEEPING
Dublin-domiciled oeics:
• New Star Asian Opportunities Fund (now managed by Andy Beal, was Ian Beattie)
• New Star European Growth Fund (still Richard Pease and Simon Rowe)
Luxembourg-domiciled Sicavs
• New Star Indian Equity Fund (still managed by Tata Asset Management, Mauritius)
UK-domiciled but available in Europe:
• New Star European Value Fund (still Nick Sheridan)
• New Star Global Equity Fund (still Nick Sheridan)
• New Star Global Financials Fund (still Guy De Blonay)
• New Star High Yield Bond Fund (still James Gledhill)
• New Star Int’l Property Fund (Roger Dosset; was Stuart Webster with Roger Dossett)
• New Star Tactical Portfolio (still Mark Harris)
• New Star Alpha Fund (Stephen Peak; was Tim Steer)
Bermuda-domiciled:
• New Star Global Managed Fund (Mark Harris and Craig Heron, was Gregor Logan)
