Wealth Manager - Essential news for investment professionals

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Octopus wraps tentacles around MedicX in £1bn deal

Octopus wraps tentacles around MedicX in £1bn deal

The MedicX Group, which runs the popular MedicX fund, is to be acquired by Octopus in a transaction that will boost the boutique’s assets by around £1 billion.

The closed-ended MedicX fund is a specialist investor in primary healthcare properties, with total assets of £489 million, that has long been an income pick among wealth managers including Investec, Rathbones and Brewin Dolphin thanks to its 6.9% yield.

Over the past three years the MedicX fund, which trades on a 34% premium to its net asset value, has returned 33.5% compared with 28.4% from the MSCI World Real Estate index.

Octopus has now agreed to buy the fund’s parent group, including the management team, which the firm stated would take assets under management at Octopus from £3.5 billion at present to approximately £4.5 billion.

MedicX is being sold by several other investors, Cabot Square Capital among them. The deal is subject to approval from the Financial Conduct Authority, but is expected to complete by the end of September 2014.

Mike Adams, chief executive of MedicX Group, will continue to work with his existing team in the same role on the MedicX fund.

David Staples, chairman of the MedicX fund, confirmed that there would be ‘no change in the strategy, nor the investment advisory agreement’.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Sarasin’s Boucher: why I like salmon with chocolate

Sarasin’s Boucher: why I like salmon with chocolate

Henry Boucher, manager of the £129 million Sarasin Food & Agriculture Opportunities fund, explains why he is gobbling up salmon and chocolate stocks.

Play Alibaba hype, the UK slowdown and opportunities in European sovereign bonds

Alibaba hype, the UK slowdown and opportunities in European sovereign bonds

Libby Ashby and leading wealth managers analyse what the Alibaba IPO hype means for Chinese equities, slowing growth of the UK economy and whether there’s anything left to play for in the European sovereign bond market.

Play Tesco, Japan and the rise of the central banker

Tesco, Japan and the rise of the central banker

 Libby Ashby and leading wealth managers scrutinise the food retail sector, Japan’s consumption tax hike and political risk in the markets.

Your Business: Cover Star Club

Veteran banker boosts Sanlam’s stockbroking team

Veteran banker boosts Sanlam’s stockbroking team

A veteran private banker has been recruited by Sanlam Private Investments to strengthen its advisory stockbroking team.

Wealth Manager on Twitter