Henderson Investors European Value unit trust is to be merged with Henderson European as part of gro...
Henderson Investors European Value unit trust is to be merged with Henderson European as part of group's move to an Oeic.
The structure will also allow IFAs to receive renewal commission for the first time for investments outside Isa or Pep transfer wrappers.
As Investment Week reported on 26 June, the group is to establish two umbrella structures, a UK & European and a Global Oeic. John Botham who currently manages European Value will run the merged European fund.
Simon Ellis, sales director at Hendersons, said: "We decide to merge the two portfolios because they were run in a similar way and achieved the same level of good performance. European Value wasn't really a value fund, if it was it would have been bottom of the pile over three years."
During the three years to 12 July European Value is ranked seven out of 91 in the Europe ex UK sector while Henderson European is ranked ninth. Stephen Peak, manager of the European fund, will concentrate on managing the group's European investment trust money. Hendersons decided not to merge its European Exempt unit trust into the new fund. Ellis said: "The exempt fund is run in different style with a lower risk and reward approach."
While the European Exempt fund is being kept separate in the new Oeic structure the group has decided merge its UK, US and bond invested exempt funds into their retail counterparts. Income & Growth is to be merged with Income & Growth Exempt, while UK Smaller Companies is to be merged with Cygnet Exempt.
Ellis said: "Our UK money is now run using the group's institutional model. We original established our Exempt range for pensions and charities, but now legislation has abolished the tax advantages associated with exempt funds."
For the same reasons North American is to be merged with its exempt counterpart and Global Bond will be merged into the International Bond exempt and Overseas Bond funds. The group has also decided to integrate Pacific Smaller Companies with Asian Enterprise with the new fund being run by Heather Manners.
The £10.2m Japan Smaller Companies is to be merged into the £33.4m Japan fund. Ellis said the smaller companies portfolio was proving to be unprofitable to run. The charges on some funds will change slightly with the implementation of the Oeic structure. In general the initial charge into the retail share class will be 4-5% with IFAs able to take 3% initial commission. The annual management fees is 0.75-1.5% with 0.5% renewal available. Intermediaries investing money on behalf of clients outside an Isa or Pep transfer wrapper will only be able to claim the renewal commission on new business.
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