Polen Capital, the $60bn US-based investment manager, will take over the UK funds of Somerset Capital Management — the collapsed emerging-markets boutique co-founded by Conservative MP Sir Jacob Rees-Mogg.
Somerset, established in 2007, announced on 7 December that it was winding down, having lost a key mandate from UK wealth manager St James’s Place that accounted for around two-thirds of its assets under management.
SJP’s decision to terminate its relationship with Somerset Capital slashed assets under management to around $1bn and put the business in a precarious financial position.
READ Inside Somerset Capital’s downfall
As Polen takes over the funds, a team of Somerset portfolio managers will join its emerging markets team in London. These include Mark Williams, portfolio manager of the Asia Income and Emerging Market Dividend Growth strategies.
“This will ensure continuity of investment process and fund objectives,” Somerset said in a statement.
“Polen has committed to undertake the promotion and distribution of the funds with a view to ensuring their future growth and longevity.”
The Asia Income fund is among Somerset’s best performers. It has returned 4% and 29.2% over the past one and five years respectively, putting it in the top quartile among its peers.
AssetCo, the dealmaking company headed up by City veteran Martin Gilbert, was among others lining up a bid to salvage Somerset funds.
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