The purchase by New Star of six of Aberdeen's retail fixed interest, UK equity and technology unit t...
The purchase by New Star of six of Aberdeen's retail fixed interest, UK equity and technology unit trust range for 5% of funds under management is expected to be announced today.
Aberdeen's head of technology investment, John Pullar-Strecker, is expected to move to New Star to continue running the £412.4m Technology and £26.8m European Technology funds involved in the purchase. Investment Week understands the deal involves assets of £1.85bn.
At 5% of funds under management, New Star is paying considerably more than the 1% Insight paid for the Rothschilds funds business. However, this is still some way off the 10% paid by Invesco and Prudential at the height of the market for their respective acquisitions of Perpetual and M&G.
Aberdeen UK Equity Income is likely to move to New Star. The portfolio has assets of £247.5m. The group's entire fixed interest range comprises the Fixed Interest, High Yield Bond and Gilt Income vehicles, along with the £1.06bn flagship Sterling Bond fund.
Three of these unit trusts will be moving to New Star. Paul Reed, manager of the Aberdeen Fixed Interest fund, is expected to stay with the group to run institutional money.
The deal with New Star comes after a difficult 2002 for Aberdeen, during which its assets under management fell by around £11bn after the loss of an £8.9bn institutional mandate from Scottish Provident.
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