Henderson strengthens position with

12th January 2011

Henderson has struck a deal for Gartmore for £335m and announced lock in agreements for 13 key Gartmore managers covering around 84 per cent of the assets under management.

Henderson will have £78.1bn assets under management following the deal, reported here on Reuters.

The all share deal will see Gartmore swapping two of its shares for every three of Gartmore's and should be finalised by the summer, when the Gartmore name will disappear.

The UK Oeic range will also be rationalised in the summer, followed by the Luxembourg range, though Henderson believes many funds in the two firms' ranges are complementary which should minimise disruption. In particular, it says the deal will build its expertise in emerging markets and in the absolute return space, one reason why it has acted so quickly to bind in the managers. Gartmore has around £6bn in assets managed in the absolute return style.

Reaction

Here Citywire reports the key fund managers who have signed up plus a few high profile fund managers and directors with whom negotiations are ongoing.

Gartmore brought in Goldman Sachs to seek a buyer after the departure of Roger Guy from the European Absolute Return fund in November. Redemptions from that fund topped £500m destabilising the group. Henderson says one of its aims is to rebuild the assets of this fund under the stewardship of John Bennett.

However investors in Gartmore's IPO may be very disappointed as the firm listed at 220p a share late in 2009. Blogsite Capitalists@work suggests this is a double whammy given the FTSE's recent progress.  

Before the deal, some commentators were querying the price. For historical interest here is Lawrence Gosling's from Investment Week.

However stock markets reacted positively to the deal this morning as shown by this report on efinancialnews .

The loss of the Gartmore brand means one of the most established names in UK fund management disappears. It was founded in 1969 initially to manage the money of the Cayzer family shipping dynasty.

22 thoughts on “Henderson strengthens position with”

  1. forbin says:

    Hello Shaun,

    A currency that cannot be debased is a major threat to world stability and future wealth of those running the other currencies .

    So you can’t debase it so whats the point of it answer 😉

    could you give us some idea on the actual effect of currency inflation because it doens’t appear to be surfacing on the media or HMG event horizons….

    But at home I can see that my inflation rate is on the order of 10%

    Its a good job most of the public can’t tell whats going on but then again if you cant hard default then soft is the way to go …..

    Forbin

    1. DaveS says:

      Think it has just been debased by hacking.

      1. forbin says:

        Well it is a major threat to the USA and China…..

        Forbin

    2. Anonymous says:

      Hi Forbin

      I can help out a little with the price of your favourite product popcorn. As I have a sweet tooth it is toffee popcorn and in relatively short order the price of a supermarket own brand pack (200g) has gone 85p then £1 and now £1.10p.

      If I had known I would have kept a full record as there is little sign of 1.9% inflation to be found there.

      1. Anonymous says:

        Hi Shaun,
        need to be careful there. Record keeping to hold ‘people’ to account didn’t end well in Orwells 1984 did it……
        DL

  2. anteos says:

    Hi Shaun

    the eternal bitcoin debate :-)

    much as I love bitcoin, I’m expecting it to fail. As forbin has noted, this is a direct threat to the US and central banks. I expect they will either try to covertly collapse it, or to label them terrorists and ban holding of bitcoins (similar to gold during the depression).

    1. Anonymous says:

      The more valuable bitcoins become, the greater the ROI for hackers, fraudsters and counterfeiters becomes.

      Also we should recognise that money launderers, terrorists and some very nasty criminals would find anonymity convenient, whilst law enforcement officials have a motive to defeat the encryption. Wasn’t Enigma supposed to be unbreakable ?

      1. Just a thought says:

        Hi Expat,

        Money launderers aka Fed, Central Banks and banksters. Terrorists aka Governments, IMF and countless faceless system’s servants and some very nasty criminals aka Tony Bliar, GW Bush to name a few…
        It is what you meant or I did I misunderstand your thinking??

        1. Anonymous says:

          I was thinking of murderers like Bin Laden, child porno sellers and extortionists. For Bliar and other abusers of power, I’d hope for accountability via the courts, but our supposed democracies suffer from a lack of proper voter representation and a lack of proper accountability.

          I want rule of law controlled by Swiss style referendums.

  3. Anonymous says:

    Shaun,
    I think I understand how fiat currencies work and the risks they present, which are considerable.
    I know that I don’t understand how Bitcoin works, so I won’t be buying any myself.
    I’m grateful to those who do buy them because it seems an interesting experiment that could challenge the banksters and the politicians in their pockets.

    1. Anonymous says:

      Hi Ian

      If central banks remain on the same path then I expect there to be more moves towards crypto/digital currencies. Will that be Bitcoin? That’s much harder to say but we do have the example of the railways in the UK where innovation on a grand scale led to a railway network but also many collapses.

      Perhaps the next effort will involve digital currencies that are simpler to understand and perhaps follow the KISS acronym.

      1. Anonymous says:

        Online visa transactions have audit trails. This doesn’t always prevent fraud, but the credit card industry has made procedures tighter.

        If bitcoins are truly anonymous, then auditing transactions is not possible.

        I’d suggest that audit trails are an important backup system for a trustworthy digital currency.

        1. Anonymous says:

          Sorry – having read the bitcoin site, they do have an open transaction trail.

          However, there is no requirement for transacters to leave identification information. Nor is there any method to rollback a doubtful transaction.

  4. Pavlaki says:

    I never did and still do not really understand Bitcoin (maybe getting a bit old for this sort of thing?) as it appeared too good to be true and liable to hacking etc. On the other hand Fiat currencies are manipulated and debased so maybe I’m out of touch!

    1. Drf says:

      Fiat currencies are debauched because they easily can be; they do not have any datum of reference, other than etherial “confidence”. The cost of paper or plastic (as Carnage evidently prefers because he is about to print so many of them) is insignifcant relative to the transitory value of the resulting banknote. That was the whole prevous reason for the Gold Standard. Imperfect though it was it prevented politicians from debauching their currencies to pay for their own successive and continued profligacy. If there is no inescapable datum then there is no limit to debauchery as we have seen in Rhodesia (since it became Zimbabwe) and elsewhere.

  5. Anonymous says:

    Hi Shaun, Thanks for remembering my comment.

    Bitcoins depend on cryptology – a mathematic science. Cryptology is designed to obscure, but 100% crackproof guarantees do not exist. SSL (web based encryption used to hide passwords, credit card information etc) is designed to make brute force attacks uneconomic for hackers, it is not designed to be unbreakable. (Eg The high powered computers needed cost more than can be earned by credit card fraud). Conspiracy theorists might wonder if the NSA’s reputedly high powered systems could be used to search for terrorist owned bitcoins

    Bitcoins risk that someone guesses/has your private key. The easiest way to gain this is probably through a compromised pc. Massive botnets show that compromised pcs are a significant risk. Other IT security risks exist.

    I would also comment that trust is important for central bank backed fiat currencies. Why should we trust central banks that ignore their own rules ? Why should we trust central banks with dubious and misleading official inflation statistics ? Where do we expect massive expansion of the various monetary bases to lead ?

    1. Drf says:

      Clearly from past and now well-established performance, none of us should trust Central Banks at all, not even the Swiss, who used to be the stalwart of last refuge.

    2. Anonymous says:

      Hi ExpatInBG

      It seems we have gone from a world where many things (such as money) seemed sure to secure to one where they are not. Of course the previous world was mostly an illusion as the issues with fiat currencies become exposed. I liken it to a hall of mirrors at a circus or fun fair,which is the true one? If any…

  6. Anonymous says:

    That’s it, I have had enough…..in my part of the Philippines I am confident I can successfully use goats and fish as my currency…..only problem I can see is trying to pay for my Marmite shipments online? You gotta love it (or hate it, to be balanced as this is Shaun’s blog)

  7. ThickAsThieves says:

    What is this nonsense post? Neo didn’t lose capital, bitcoin was only worth about $130 during the fundraising. It GAINED a tremendous amount of capital due to bitcoin’s RISE.

  8. wannabee says:

    oh my god the inaccuracies and the FUD in your post are beyond belief

  9. bocobit says:

    Unless the author is privy to some inside knowledge that the shareholders of NEOBEE aren’t aware of, there are some facts in this article that are not correct. NEOBEE has lost 29% of capital due to the drop in exchange price? Show the price when the IPVO started and show the price of BTC today. Also, how do you know that all of the capital of the company is in bitcoin? Btw the price of NEOBEE has doubled in the last three days. Put that in your next article Shaun.

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