Formica says the costs and admin of shutting or merging funds make it likely the major- ity will stay, with some managers taking on more responsibility.
He says: “We feel that would be beneficial to those holding the funds as they do not want to go through the rigours of moving across to another.”
Formica says the firm was asked its opinion on the winding up of the Heart of Africa fund. “We agreed it was a highly illiquid area of the market and the fund would not suit clients in the foreseeable future,” he says.
Henderson chief investment officer David Jacob says that he still hopes to get 80 to 90 per cent of the managers he wants from New Star at the conclusion of the deal.
New Star European fund manager Richard Pease has invested £500,000 of his own money into his fund.