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Henderson to merge 12 funds in final Gartmore integration
Markets
by Danielle Levy on Feb 14, 2012 at 12:00
Henderson Global Investors is planning to merge away 12 funds, a move which the group says represents its final integration stage following its purchase of Gartmore, Citywire can reveal.
The move represents the third round of rationalisations since the Gartmore deal completed in April and also follows the acquisitions of New Star back in 2009.
James Bowers, head of product at the firm, said the mergers represented the final stage of the integration of both the Gartmore and New Star ranges, and was an integral part of the group's plan to position itself firmly as a retail brand.
'What we want is to have the most attractive retail range to our [fund] buyers. It is very sub-optimal to have too many funds in it or duplication. We have taken a pretty radical approach. We started from the end position and said how we would like to see the fund range hang together, so it is broad yet focused,' Bowers said.
The rationalisations have been accompanied by proposals to change the investment objectives of two funds, which include broadening the investment universe of its £556.8 million Higher Income fund, run by Andrew Jones and Ben Lofthouse, by giving it a global remit and renaming it the Henderson Global Equity Income fund.
In a move which is contrary to other fund groups, Henderson, led by Andrew Formica (pictured), is proposing to turn its £43 million Henderson Diversified Absolute Return fund, run by Bill McQuaker and Paul Craig, into a total return mandate and rename it the Multi-Manager Diversified fund, which will move into the newly created IMA Mixed Investment 0-35% shares sector.
Meanwhile, subject to unitholder approval, Nick Sheridan’s £3.8 million Henderson European Value fund will be merged into Citywire AA-rated Richard Pease’s £839.2 million European Growth fund.
In other changes John Bennett’s £24.6 million European Focus fund will absorb assets from Simon Savill’s £58 million European Smaller Companies fund . The firm said it anticipates a period of small cap outperformance may come to the end, with an all-cap approach offering investors a better risk/reward profile.
Bowers added: 'I think it is a case of 10 years ago every fund group had one [a European small cap fund]. Sometimes you have to question the relevance of some sectors and this is backed up by a lack of interest from the fund buying public.'
Henderson’s fixed income range will also be streamlined with John Pattullo and Jenna Barnard’s Fixed Interest Monthly Income fund absorbing both the Extra Monthly Income Bond and High Yield Monthly Income funds.
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Look up the funds
- Henderson Higher Income A Inc
- Henderson Diversified Absolute Return A Acc
- Henderson European Value A GBP Acc
- Henderson European Growth A Acc
- Henderson European Focus Ret Acc
- Henderson European Smaller Companies A Net Acc
- Henderson Fixed Interest Monthly Income
- Henderson Extra Monthly Income Bond
- Henderson High Yield Monthly Income Ret Inc
- Henderson Managed Distribution Inc
- Henderson Cautious Managed Ret Acc
- Henderson Asian Dividend Income
- Henderson Global Care Growth A Acc
- Henderson Global Care UK Income A Inc
- Henderson UK Strategic Income
- Henderson US Opportunities Ret Acc
- Henderson US Growth Ret Acc
- Henderson International A Net Acc
- Henderson Global Innovation Acc
Look up the fund managers
- Andrew Jones
- Ben Lofthouse
- Bill McQuaker
- Paul Craig
- Nicholas Sheridan
- Richard Pease
- John Bennett
- Simon Savill
- John Pattullo
- Jenna Barnard
- Christopher Burvill
- Thomas Marsico
- Stuart O'Gorman
More from us
- Anderson and Roberts on job hunt as Henderson axes 14 Gartmore funds
- Henderson SRI team set to leave business
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