Harris says a merger of the Henderson and New Star multi-manager businesses is a “good fit” despite other opportunities in the market.
Harris says he and co-head Craig Heron understand that there are overlaps in certain sectors, such as the active and cautious funds, but that these can be worked out to create a coherent offering to the IFA market.
He says: “The important thing to realise is that we would like to stay with the assets that we have built. 2008 was a horrible year for New Star. When you have been with the assets for a long time, you want to put that right.”
Henderson’s multi-manager head Bill McQuaker is understood to be taking an increasing emphasis on his role as head of equities, a position he took on last September as part of a management shake-up.
Harris says he expects up to 20 per cent more consolidation in the multi-manager market but believes stockbrokers may look to join the foray.
He says: “A number of these guys have huge balance sheets and it may make sense for them to enter multi-manager to do better deals for some of their smaller clients.”