New Star has bought three fundsthe 34m European growth, 40m UK equity and 115m UK fixed-interest portfolios – with BlackRock taking Tilney’s 10m US growth fund.
European growth fund manager Nicholas Sheridan will follow his fund to New Star and it will be rebadged, keeping its existing track record, as a European large-cap fund.
The blue-chip portfolio is seen as complementary to New Star investment chief Richard Pease’s mid-cap-focused European growth fund.
The UK equity fund will be merged into Stephen Whittaker’s UK growth fund and the fixed-interest portfolio into Phil Roantree’s sterling bond fund.
BlackRock will merge the Tilney US growth fund into Bob Doll’s US dynamic fund.
Tilney, which is owned by Deutsche Bank, is retaining its managed funds as it sees them as core to its private client business.
A spokesman says: “We now have some 8.1bn of invested assets and the rapid growth of the private client arena has led to us taking the decision to focus solely on that market.”