Intrinsic and New Star to launch major asset management venture

Intrinsic Financial Services, one of the most successful new distribution networks, and New Star, one of the UK’s leading fund management groups, have announced plans for a major new asset management venture.

The initiative will involve the launch of a range of multi-manager investment funds designed specifically to meet the needs of Intrinsic clients.

The new funds, which will be linked to the platforms of some of the UK’s leading investment and pension providers, will be managed by Simon Akroyd, who heads New Star’s private client division. Simon has more than 20 years’ experience in the City and before joining New Star held the position of managing director of private portfolio management at Aberdeen Asset Management. Prior to Aberdeen, Simon was fund director and head of the private unit trust desk at Cazenove.

Simon will be supported by the private client team and will also be drawing on the expertise of New Star’s fund of funds team members, with whom he already works extensively. Each fund will invest in a mix of appropriate asset classes through open-ended investment companies (OEICs), investment trusts and exchange-traded funds to provide investors with access to a diversified portfolio of investments across the risk spectrum. These new funds will be sub-funds of a newly-established OEIC, which will have New Star Investment Funds as its authorised corporate director.

More information on the funds will be available in the second quarter of 2008, when Intrinsic will launch these new products.

Lord Leitch, chairman, Intrinsic Financial Services, says: “In less than two years, Intrinsic has become one of the largest and most successful distribution networks in the financial services industry. I believe that asset management represents the single most important and exciting new opportunity for Intrinsic as we enter the next phase of our growth strategy.

“We are pleased to enter into this partnership with New Star. The combination of the abilities of its fund management team together with its strong brand presence in the retail market will provide an attractive proposition for our advisers and their clients.”

John Duffield, chairman, New Star Asset Management, says: “I am delighted that Intrinsic has chosen to partner with New Star in what is a significant development for both companies. We look forward to working closely with Intrinsic over the years to come.”