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European Wealth buys three funds from Hume Capital
by Robert St George on Jan 10, 2014 at 07:53
European Wealth, whose group chief executive Rod Gentry (pictured) is a former Wealth Manager cover star, has bought three funds from Hume Capital to enhance its fixed income range.
The firm has acquired the Hume International Bond fund, which will be renamed the European Wealth Sterling Bond fund, and the Hume Global Opportunities and Hume European Opportunities equity funds, expanding its presence in retail fund management.
John Morton, executive chairman of European Wealth, said ‘the real driver’ for the deal was the bond fund. This will be managed by Nigel Marsh, formerly of New Star, and will become sterling rather than euro-denominated.
European Wealth will also change the fund’s fee structure. On the A share class, the maximum initial charge will fall from 5.25% to 1%, while the annual charge will rise from 0.95% to 1%; the B share class’s annual charge will be cut from 0.65% to 0.25%; the X shares will be renamed as C shares and their annual charge will drop from 0.5% to 0.15%.
Morton confirmed the management of the two equity funds will remain with Hume ‘in the short term’ while European Wealth evaluated the options.
He added that it had made ‘a lot more sense’ for European Wealth to buy the funds rather than build their own due to the regulatory burden of launching new products.
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