This was the largest fine ever imposed by the then regulator in a conflict of interest case. In addition to that fine, the US Securities and Exchange Commission also fined the company $8.3m in the US.
ESTABLISHED FUND MANAGERS GOING IT ALONE
Woodford Investment Management
The most high-profile launch was that of Neil Woodford’s new business, which already runs £8.5bn in spite of only opening for business in June. The CF Woodford Equity Income fund was £3.7bn in size at the end of November and the manager successfully retained the mandate he ran for St James’s Place, which is of a similar size.
Loyal supporters seem to come in all sizes, with FTSE 100-listed, direct-to-consumer platform Hargreaves Lansdown still championing Mr Woodford and investment stalwarts such as John Chatfeild-Roberts also backing the fund.
While the first six months have appeared trouble free, the group recently saw chief operating officer Nick Hamilton and chief legal and compliance officer Gray Smith exit.
Crux Asset Management
The move by Richard Pease to join start-up Crux Asset Management was revealed by Investment Adviser and featured an unusual twist.
Yes, the manager was leaving Henderson Global Investors, but he was taking his £1.1bn European Special Situations fund, which is top quartile in five years, with him.
It is now understood Mr Pease had the ability to take the fund with him thanks to a deal struck with Henderson at the time it bought out his previous firm, New Star.
Henderson’s James Milne, a co-manager on the Special Situations fund, also joined Crux, which has former Morgan Grenfell Asset Management and Thornhill Holdings director Alistair Reid as its chief executive.
Coram Asset Management
Just a week after the announcement about Crux, former Miton multi-manager James Sullivan announced he was also setting up his own firm. At present, Coram is a trading name of RC Brown Investment Management, but Mr Sullivan has plans to make the business a standalone entity majority owned by senior staff.
Shortly after the news of the launch, Mr Sullivan revealed his former colleague, Martin Gray, would be joining the business in January.
Mr Sullivan told Investment Adviser the duo had learned lessons from the past. The managers’ defensive stance meant they successfully navigated the financial crisis and the extreme volatility in 2011, but failed to capture much of the upside in the post-crisis rally.
