Advisers say JO Hambro fund managers will stay
Advisers are confident fund managers will stay at JO Hambro Capital Management after it is acquired by Australian fund manager BT Investment Management.
This week, BTIM announced it will acquire £7.1bn of assets under management in act-ively managed funds and segregated mandates.
The £209m deal will also include a 9.9 per cent interest in JOHCM’s private client business. The transaction is likely to occur in the fourth quarter.
Hargreaves Lansdown senior analyst Meera Patel says JOHCM managers will see their incentive structure improve following the deal.
She says: “The incentivisation structure for fund managers will improve due to an injection of cash from the deal but also ultimately there will be lock-ins for them through their equity stake so there is unlikely to be much movement.”
Chelsea Financial Services managing director Darius McDermott says: “We are very comfortable that there will be no effect whatsoever as a result of the deal.
“It is clearly a foray into the UK market for BTIM and we have had assurances that it will not interfere.”
JO Hambro chief executive Gavin Rochussen says: “We will look at selling to the Australian investors that BTIM sell to. As to whether we run any of the funds that BTIM hold, we would be open to it but it will depend on whether any of the mandates are compatible with the strategies we run in that area.”
He says the firm plans to take on a global value or glo-bal income team and will launch a product for that team. It also plans to set up an absolute return fund.