A number of clients hold New Star funds in their portfolios, most specifically the New Star International Property fund which has been suspended from trading since the end of November last year.
An announcement was made in January detailing a cash offer made by Henderson Group plc to acquire New Star Asset Management and that acquisition completed on 9th April 2009.
The acquisition resulted from financing difficulties that New Star faced as a direct result of the credit crisis, together with reducing assets under management.
Henderson Group is one of Europe’s largest and long-established investment managers with assets under management of £49.5 billion as at 31st December 2008.
A number of the key New Star fund managers have been retained by Henderson and the combined expertise of the two businesses should offer investors a stronger level of fund management skill and resource. Full integration of the two businesses is expected to complete during May 2009.
In terms of the property fund, Henderson have a strong property department managing approximately £10 billion of assets, representing 20% of Henderson’s total assets under management. The property team has just under 200 members with a presence in Henderson offices worldwide.
A key priority for Henderson is to return liquidity to the New Star International Property fund and lift the fund’s current temporary suspension in dealing. Although we do not have a timescale for when dealing will recommence, we would expect this to be within the next few months. We shall of course keep all investors notified and shall forward our specific recommendations once the suspension in dealing has been lifted.