Investor exodus continues
From News Jan 22 2009 BY: Helen Burggraf
, Deputy Editor
, International Adviser
Asset management houses are slashing budgets, staff numbers and closing, merging or restructuring funds as they struggle to survive the global financial downturn.
Asset management houses are slashing budgets, staff numbers and closing, merging or restructuring funds as they struggle to survive the global financial downturn.
New Star has been one of the most high-profile victims of the credit crunch.
The once FTSE 250-listed firm was put up for sale in December by a syndicate of five banks after they took control in return for an equity stake.
Under the deal, New Star’s banks will cancel £240m of its £260m debt in return for a 75% share in the business, leaving shareholders to split the rest.
More than ten potential buyers have reportedly expressed interest in the firm, including, Henderson, Neptune and even Gartmore, which has also been making cutbacks recently. It is letting some 68 staff go.
Elsewhere, F&C Asset Management announced plans to cut about 10% of its costs, or £15m, on top of a £12m cost-saving plan unveiled earlier in the year. Between 60 and 99 jobs are expected to go, with support staff jobs rather than fund
managers targeted.
Liontrust and Shore Capital were relegated from the FTSE All-Share Index in December after falling short of liquidity requirements during the FTSE’s quarterly review.