DB Advisors set to manage Henderson fund

DB Advisors, part of global asset manager Deutsche Asset Management, is adding £3.3bn to its money under management after Henderson Global Investors proposed merging its Henderson Liquid Assets fund into the Deutsche Sterling fund

Both are sterling-denominated, treasury-style money market products.

Henderson is proposing the merger to its clients after a review of its cash investment business earlier this year suggested global regulators could subject treasury-style money market funds to banking regulations.

“Henderson is an independent investment manager and does not seek to offer banking products and services to its clients,” the board of Henderson’s fund said.

The company therefore recommended seeking an alternative manager operating within the banking regulatory model.

DB Advisors, part of £460bn manager Deutsche Asset Management, was chosen and became a sub-advisor to the fund on 12 October.

Henderson said the performance of Deutsche’s fund was comparable to its own, and shareholders in the merger portfolios “would also be able to participate in the greater diversity of investment opportunities arising from DB Advisors’ scale, extensive investment resources, and broad range of fixed income and liquidity management capabilities”.

Henderson expects the merger, whose costs it will bear, to be complete by the end of February.

Mark Bolton, DB Advisors UK chief executive, said: “We would be delighted to extend our relationship with investors in HLAF and welcome them as direct clients.”

DB Advisors already runs over €94bn of money market assets.

The total assets in Deutsche’s Global Liquidity Series of funds is over £12bn. The Deutsche Sterling fund, part of this range, has £223m.

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