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Henderson reveals £4.24m New Star lock-ins and confirms manager moves

Henderson is expected to pay up to £2.9m in cash and £1.34m through 1.65m new ordinary shares to lock in certain New Star directors and employees until September 30.

The group announced the successful acquisition of New Star this morning with settlement of consideration due under the offer to take place on or before April 16.

The consideration due to the New Star preference shareholders has been settled today including £45.5m in cash and over 25m in new ordinary shares.

The terms of the acquisition value New Star at £107m. The group is also looking at lock-ins in the region of three-years for leading New Star managers.

Henderson has also confirmed the new fund manager line-up following the acquisition.

The managers of the combined Henderson UK fund range have been confirmed and include Richard Pease, Guy de Blonay, Nick Sheridan, James Gledhill, Roger Dossett, Mark Harris, Craig Heron, Trevor Green and Simon Rowe, all of whom will continue to manage the same funds as they did at New Star.

For other New Star funds, a Henderson fund manager has been appointed to provide greater potential for improving the investment performance for investors in those funds.

The group has confirmed there will be no change to the management of the Henderson funds.

Notable New Star departures include Tim Steer, Charles Deptford and Phil Roantree, with Hendersons’ head of credit Stephen Thariyan and fund manager Philip Payne taking on the latters £316m sterling bond fund.

Henderson head of European equities desk Stephen Peak will replace Artemis-bound Steer on the UK alpha fund.

Henderson chief executive Andrew Formica says: “We are delighted to have reached this stage so quickly after announcing the deal just nine weeks ago. The combined UK retail business reflects the strengths of both businesses, the security and stability of Henderson, which was 75 years old last month, with the well documented innovative approach for which New Star is known.

“For investors in New Star funds they need no longer worry about New Star’s financial position or further corporate uncertainty. For existing Henderson clients the addition of talented fund managers boosts our existing investment teams and provides new viewpoints, skills and expertise and puts us firmly as a leader in the UK retail market. This is a fresh start for investors in New Star funds and our number one priority is to get back the levels of performance that investors in these funds expect from us as their investment managers.”

Hagreaves Lansdown investment manager Ben Yearsley says: “Henderson seems to have done a reasonable job in attracting most of the top fund managers with the exception of Tim Steer.

Ultimately the cash element doesn’t sound like a lot if they’re trying to lock them in but I’m assuming they’ll have long-term salary incentive schemes in place so it’s largely irrelevant.”


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