Liontrust poaches Thames River’s Mabbutt to head new credit arm

UK manager Thames River’s Michael Mabbutt is set to join another UK manager Liontrust to run a newly created Global Strategic Bond fund.

Mabbutt takes on the role of head of the new credit division in January 2013. The firm will then launch the Dublin-based Global Strategic Bond fund in the new year, subject to regulatory approval.

He is aconsulting partner at Thames River Capital and was previously head of the global credit division at Thames River, head of emerging market debt at LGT Asset Management, and head of emerging market debt at Baring Asset Management. He was also lead fund manager of the Thames River Hillside Apex fund, a Cayman Islands hedge fund; and the Thames River High Income fund, a Dublin Ucits fund.

Liontrust previously had a credit team, led by Simon Thorp, which it poached from Ilex in 2009.

In April 2011 Liontrust sold the loss-making credit arm  to Avoca for £2.3m, and its two funds, the Liontrust Credit Absolute Return fund and the Liontrust Credit fund, which had £85m in assets under management in total, transferred to Avoca as part of the deal.

At the time Liontrust chief executive John Ions (pictured) said the sales would allow the firm to build on its existing UK and European equity teams and their strong long-term performance records.

“We believe this transaction is a win-win for everyone concerned. Investors will benefit from fund management continuity and the resources of a much larger credit manager and Liontrust will free resources to expand our fund management capability,” he said last year.

“As we have publicly stated on a number of occasions, we are committed to growing our retail and institutional assets under management. We will do this through both marketing our existing UK and European equity funds, which have strong long-term track records, and recruiting new fund management teams. This strategy has not been changed by the sale of the credit team.”


This article was first published on Investment Week

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