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Richard Pease sues Henderson in £2.7m contract row

European fund manager's clash with former employer shines a light into pay practices at  City of London investment firms.

 
Richard Pease sues Henderson in £2.7m contract row

Star European fund manager Richard Pease is suing his former employer Henderson Global Investors over a pay dispute, according to the Sunday Times.

The Citywire A-rated fund manager claims Henderson breached the terms of his contract as it ‘failed and refused’ to pay him £2.7 million between 2012 and 2014, according to the High Court claim seen by the paper.

Pease (pictured) joined Henderson following its acquisition of New Star but quit the firm in October 2014 to set up his investment boutique Crux Asset Management.

The court papers reveal Pease – who is being represented by law firm Spring Ferguson – was entitled to the half the management fees paid by investors on the three funds he managed, which is said to have amounted to almost £14 million between 2009 and 2015.

As part of the arrangement he was allowed to take his European Special Situations fund, which had £1.2 billion in assets under management at the time, with him to Crux. It charges 1.5% a year.

Henderson European Growth , which Pease left behind, has a total annual ongoing charge of 1.7%. It is now managed by Simon Rowe

3 comments so far. Why not have your say?

The Old Man

Feb 29, 2016 at 09:41

Some of these annual ongoing charge rates are very hard to justify as are the associated pay packages. I simply don't believe most managers are quite that hard to replace. Perhaps its time investors woke up to some of these facts and started to vote with their feet?

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Anonymous 1 needed this 'off the record'

Feb 29, 2016 at 10:11

sheep are easily led.

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Frank Frank

Mar 05, 2016 at 13:05

If idiots are willing to pay 1.7% in charges, which will give away 50% of their fund by the time they retire, why not let them?

How else do people think the top 1% come to own 50% of the wealth?

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