Paul Reed and his Aberdeen Fixed Interest team will advise New Star on an ad hoc consultancy basis f...
Paul Reed and his Aberdeen Fixed Interest team will advise New Star on an ad hoc consultancy basis following the Scottish fund group's decision to sell his Fixed Interest fund.
Reed will remain an Aberdeen employee but will assist New Star in the transition of the fund's management.
His Aberdeen colleagues Phil Roantree, corporate bond fund manager, and John Pullar-Strecker, head of technology, are leaving Aberdeen for New Star to continue managing their respective funds.
Mark Sanders and a number of Aberdeen's four-strong credit analyst team are also to be approached, New Star confirmed.
Rob Page, marketing director at New Star, said: 'Paul Reed and the rest of the Aberdeen Fixed Interest team will work for New Star on a consultancy basis and be available for input for an unspecified period of time.'
The deal between the two groups comprises £1.85bn in retail assets split across Aberdeen's Fixed Interest, Sterling Bond, High Yield, Equity Income, Technology and European Technology funds for an estimated price of £92.5m, some 5% of assets under management. The deal is expected to be completed by 17 February.
Page said New Star is keen to ensure continuity in the management of the funds so manager, mandate and charging structure will be kept constant wherever possible.
As such, Reed and his team's input will ensure continuity on the £948m Fixed Interest fund, although James Gledhill is to assume ultimate authority for its management.
New Star will also maintain the existing charging structure on the Aberdeen funds. Aberdeen's bond funds charge the annual management fee to capital rather than income, preserving the yield, whereas New Star High Yield charges annual fees to income, which will also not change.
None of the Aberdeen funds will be merged into corresponding New Star vehicles in the near term, Page said.
The mandates of the three Aberdeen bond funds are considered differentiated enough to remain standalone vehicles and besides the rebadging of the funds as New Star, only the Aberdeen High Yield Bond fund will be renamed. It will take the name New Star Extra High Yield to differentiate it from New Star's existing High Yield fund and both will be managed by Gledhill.
Page said: 'The two high yield funds are different and it is our intention to keep the bond fund range as it is. The Aberdeen fund is totally invested in sub-investment grade and has a correspondingly higher yield. New Star High Yield is a hybrid of sub-investment grade and investment grade bonds.'
The technology funds will remain the same and both will be managed by Pullar-Strecker. He has managed the Technology unit trust since 1998 but European Technology will be a new mandate, having previously been run by Rob Sellar. Ben Rogoff replaces Pullar-Strecker as head of technology at Aberdeen.
It remains undecided whether Equity Income, the only Oeic sub-fund among the six Aberdeen funds, will be merged into Toby Thompson's New Star Income fund.
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