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Henderson axes 14 Gartmore funds

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Henderson axes 14 Gartmore funds

Citywire can reveal that Gartmore managers Dan Roberts, John Anderson and Leigh Himsworth will not join Henderson when the firm completes its takeover of Gartmore and are likely to see their funds merged away in the summer.

The three managers and their teams will not join Henderson alongside a number of other managers, including Asia Pacific manager Jan De Bruijn and Japan specialist Mike Gleason, subject to Henderson's takeover of Gartmore completing in early April.

When the integration of the two groups gets under way, Henderson is proposing to merge away 14 of Gartmore's funds in the summer, including equity income, fixed income, multi-manager and UK equity mandates. The funds that are retained will be rebranded Henderson after the summer, subject to unitholder approval.

European equity manager John Bennett (pictured), emerging markets managers Charlie Awdry and Chris Palmer alongside UK long/short equity managers Ben Wallace and Luke Newman are all confirmed to join Henderson after the takeover.

They were locked in when the £335 million deal was agreed in January alongside Chris Burvill - cautious managed, Rob Giles – UK Small Cap and Adam McConkey – UK small cap. Henderson has decided to add their Gartmore funds to their retail range, but will rebrand them Henderson after the summer.

Multi-manager Tony Lanning will also join Henderson, but will see a number of his funds merged into the Henderson range where there are overlaps. Lanning will co-manage the Multi-Manager funds alongside multi-manager head Bill McQuaker in the interim. These funds are likely to absorb Lanning’s Active, Balanced and Cautious mandates after the summer. Henderson is planning for McQuaker to take the lead on these funds after the mergers. Lanning meanwhile will continue to run the Gartmore Multi-Manager Absolute Return fund, which will be added to Henderson’s range.

Henderson's director of European retail Mark Skinner said the firm had sought to keep the Gartmore product range as stable as possible.

European equities

Although Europe represents an area of overlap, Henderson has decided to keep all of Bennett’s funds in tact after the acquisition. These include the £1.5 billion Gartmore European Selected Opportunities and European Focus funds. Co-managers Leopold Arminjon and Tomas Pinto will move over to Henderson and continue to run the European Absolute Return fund with Bennett, who took over management after the departures of Roger Guy and Guillaume Rambourg last year.

The Gartmore European equity offering will sit alongside Henderson’s existing proposition, headed up by Richard Pease.

Henderson head of equities Graham Kitchen said that after much analysis of the two propositions, the firm had decided to keep both offerings separate because of the differences in style between the two teams, with Bennett tending to focus more on large-cap while Pease is more mid-cap oriented.

Kitchen explained: ‘Both funds have superb track records but the products are different. We have two of the best managers in the market and because the products are differentiated we don’t need to make changes. There is no reason why we can’t get even more market share in this area.’

Pease and Bennett will head up different teams and report to Kitchen.

Global, Emerging Markets and Asia Pacific

The Gartmore China Opportunities, run by Awdry, Palmer’s Emerging Markets Opportunities and Latin American funds, Neil Rogan’s Global Focus and John Stewart and Robert Tull’s Japan Absolute Return fund will all be added to the Henderson range.

The Gartmore US Growth fund, sub-advised by Marsico Capital Management, will also be added to the Henderson range.

UK equities

Subject to the deal completing, Henderson is proposing to merge Roberts’ £165 million Gartmore UK Equity Income fund into Graham Kitchen and Andrew Jones’ £461.2 million Henderson Higher Income fund.

Henderson will also seek unitholder approval to absorb Leigh Himsworth’s Gartmore UK Alpha and Gartmore UK Growth funds into Stephen Peak’s Henderson UK Alpha fund. The mergers are scheduled to take place during the summer.

Henderson said it had decided to merge away Roberts’ (pictured below) equity income fund due to overlaps between the equity income offerings of the two companies. The firm pointed to strong performance from James Henderson’s £325.5 million UK Equity Income fund over the past year and improved performance from the Higher Income fund, which absorbed the Henderson UK Growth & Income fund in last year.

Wallace and Newman’s Gartmore UK Absolute Return fund will remain unchanged following the takeover but will take on the Henderson brand after the summer. It will sit alongside Stephen Peak’s Henderson UK Alpha fund. McConkey and Giles’ Gartmore UK & Irish Smaller Companies will also be added to Henderson’s range. Burvill's £880 million Gartmore Cautious Managed fund will also move over and Burvill will take over management of the Henderson Managed Distribution fund from Trevor Green.

Fixed income

Henderson is also proposing to integrate the fixed income funds that will come over from Gartmore, following the departures of John Anderson (below) and Moni Steinbach. The fixed income assets will be absorbed into Henderson's existing fixed income division, which runs some £8.5 billion.

The group will submit proposals to merge Anderson’s Gartmore Corporate Bond fund into the Henderson All Stocks Credit fund, run by Philip Payne who will take over management of the Gartmore fund in the interim.

Stephen Thariyan and Payne will take over Anderson’s Fixed Interest fund, which the firm is proposing to merge into the Henderson Sterling Bond fund. Anderson’s European Corporate Bond fund is also set to combine with Thariyan’s Henderson Horizon Euro Corporate Bond fund, while Kam Tugnait’s Gartmore High Yield Corporate Bond fund is set to merge into the Henderson Extra Monthly Income fund, subject to regulatory approval.

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