Schroders Takes Minority Stakes In Boutique
Schroders announced this week it has acquired a 49% stake in RWC Partners. Under the terms of the deal RWC, which has assets under management in excess of £1.5 billion, will remain a separate entity and be managed by its existing team. This deal is the latest move by traditional managers making a play for hedge-fund type businesses, following on from Aberdeen’s purchase of Royal Bank of Scotland’s multi-manager and hedge fund business and Martin Currie acquiring Sofaer Capital’s long/short equity business. Interestingly the deal comes hot on the heels of RWC poaching Nick Purves and Ian Lance from Schroders last month.
RWC Expands Retail Push
In a busy week for the boutique, RWC also announced plans to launch a UCITS III Pan European Equity offering to be run by hedge fund manager Ajay Gambhir. RWC Europe Absolute Alpha will target a return of 10%-15% annually and will mirror the firm’s Samsara Hedge fund which Gambhir has managed since its launch back in 2007. Prior to joining RWC, Gambhir ran European equity funds at J.P. Morgan. As part of this expansion the firm expects to announce further launches later in the year.
M&G Plans Multi-Asset Income Fund
M&G is about to launch a multi-asset income fund whose aim to cater for the growing income needs in what has become an uncertain market environment. The firm will be managed by Steven Andrew, the firm’s Chief Economist and Strategist. The fund will invest across a range of asset classes including property, fixed income and global equities, targeting a yield of 4-%4.5%. The fund is expected to be available to retail investors by the end of the year.
Henderson Walks Away From Potential Acquisition Target
Henderson remains on the look-out for potential bolt-on acquisitions after it decided to end talks with US multi-boutique RidgeWorth Capital Management which is owned by Sun Trust. Henderson was reportedly looking at eight boutiques under the RidgeWorth umbrella and had been in discussions since April prior to walking away at the end of last week. The firm has spent much of the last year bedding in New Star after the integration proved to be more difficult than first expected, experiencing a large level of outflows in the UK retail market. That trend has started to shift, particularly since April 2010 when Henderson removed the New Star brand, in part due to feedback from IFA’s.
Polar Adds To UK Team
Polar Capital has appointed Luke Boarse to its UK equities team. In his new role, Boarse will work with fund manager Philip Hardy and analyst Nick Shenton. The firms states the appointment will allow Hardy to spend greater time on macro portfolio construction and risk management. Prior to joining Polar Boarse was an analyst at Millennium Capital Partners and had previously spent four years at New Star.
Morningstar Qualitative Ratings and Reports Issued This Week
Morningstar issued new and updated qualitative ratings and reports on a number of funds available to UK investors this week, including Morgan Stanley UK Equity Alpha, Fidelity Funds – Japan Equity and Schroder ISF Emerging Markets Debt Absolute Return. Click here to see the full list.
