Henderson completes first wave of fund mergers

A raft of fund mergers within the Henderson New Star fund range have been approved by unit-holders, representing the first stage in a broader rationalisation of the Henderson New Star fund range which is likely to gather speed next year. 

Greeted with the approval of unitholders, shareholders and the FSA, Henderson has merged the New Star Hidden Value fund, formerly managed by Jamie Allsopp, and the New Star Select Opportunities fund, previously run by Charles Deptford, with Stephen Peak's (pictured above) New Star UK Alpha fund.

Through the merger, Henderson hopes to reduce costs for investors and allow Peak to invest across a broader market capitalisation, reducing the fund's historical bias towards small caps.

In addition, the New Star Equity Income merges into the New Star Higher Income, which was formerly managed by Toby Thompson and is now managed by Graham Kitchen and Andrew Jones. 

Henderson said it hoped this merger would allow the Kitchen and Jones to 'focus more fully on portfolio management, company analysis and investment decisions relating to one larger fund to the benefit of investors' and that a larger fund would reduce costs, including auditor’s fees.

This decision means Henderson's equity income offering will amount to three funds, including James Henderson's UK Equity Income fund, the New Star Higher Income fund and the Henderson UK Growth and Income fund, which is also managed by Kitchen and Jones.

The move represents the first phase of the rationalisation of the respective New Star and Henderson fund ranges, following Henderson's acquisition of New Star in April of this year.

Henderson decided to merge away the New Star funds which are administered on the same platform and will look to make broader rationalisations when the New Star funds come under the same administration platform next year.