Newton in takeover deal

Newton is set to boost its private client assets under management by £930m by acquiring Henderson's private asset management business.

The group has entered into an agreement, the terms of which are undisclosed, that will see it annex Henderson Private Asset Management in August, bringing it under the Newton Private Investment Management arm.

The deal will bolster assets in Newton's private investment management business by around 25%, pushing total assets under management up to around £5bn. Henderson Private Asset Management currently runs money on behalf of more than 1,000 high net worth individuals, private trusts and charities.

Helena Morrissey, chief executive officer of Newton, said the move is evidence of the group's desire to pursue a three-pronged strategy, bulking up assets under management in its private client, retail and institutional divisions.

Morrissey said: 'We have found that in different climates, different parts of the business perform better or worse than the others. Institutional funds are more concerned with relative performance, so it does not matter if markets are weak.

'Retail business is more dependant on how the markets are performing. For the best part of a decade we have been trying to diversify our business so we have core and stable reserves, which will enable us to have less volatility in our fee income.'

To this end, Newton, with the blessing of US parent Mellon, will continue an acquisitive strategy, in particular pursuing retail and private client business, as the institutional side, where Newton made its name, is already sizeable.

The entire Henderson private Asset Management team of 12 fund managers and three support staff will move across to Newton in the third quarter this year. Morrissey said the new managers will provide some complementary skill sets, although none are expected to run any retail money.

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