James Gledhill is to join former colleague Theo Zemek at New Star just months after joining Morley a...
James Gledhill is to join former colleague Theo Zemek at New Star just months after joining Morley and weeks after the launch of his Norwich Union Managed High Income fund.
Gledhill, who with Zemek, was one of the twin pillars of the successful M&G fixed income capacity and only joined Morley in January.
He is just the latest in a succession of high profile managers to join New Star. In the last two months alone New Star has added Stephen Whittaker, Patrick Evershed and Zemek to its management stable.
Gledhill, who is currently on three months notice at Morley, looks set to manage one of two funds that Zemek, who joins New Star in November, told Investment Week New Star was to launch.
Zemek said one of the two will be a higher yielding portfolio such as Gledhill was managing at Morley and before that at M&G.
Alan Gadd, head of UK retail at Morley, said: 'Given we are a big fixed income manager in the UK, we have the resources and bench strength to cover James' responsibilities. Roger Webb will cover the fund we have launched.
'James explained to us that this was a once in a lifetime opportunity and we do not begrudge him.'
Gadd said the group was looking to add to the team following Gledhill's resignation late last week. In intermediary advertising, Norwich Union has not been using Gledhill's name or reputation, preferring to rely on brand strength alone.
Zemek, who joins New Star in November, is currently on gardening leave from M&G, from which she resigned her post as chief investment officer of M&G International.
While New Star has no firms plans as yet for its fixed interest offerings, Zemek said she is interested in running portfolios invested in the UK market. To complement a higher yield flexible product she is keen to launch what she describes as 'a more boring, steady performer.'
She wants the funds to be different to that of the competition, she said, and believes this is possible without having to resort to investing in the derivative end of the market.
Zemek said she wants to run money on an absolute return basis, rather than following a benchmark, and without taking high levels of risk.
'What I want to do is run something I would like to buy myself,' she added
Using derivatives is one way of investing, she said, but noted that the fixed interest market is broader than many think.
'Bond funds had traditionally been run along the lines that governed Pep rules, which limited investment in financials and required terms of at least 5.5 years,' said Zemek.
'Today there is no need to be bogged down in these rules so in order to go defensive, managers do not have to buy derivatives but can buy more traditional instruments such as floating notes and money market paper.'
Zemek aims to have a fixed interest team of three.
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till