JO Hambro unveils Beagles vehicle

Beagles, who joined JO Hambro in September, will run the fund in the same way as the Newton Higher Income fund he left in April. The fund will carry an annual fee of 15% of its outperformance of the benchmark FTSE All-Share index, net of charges. Any underperformance over a 12-month period will be carried forward into the next year.

Nichola Pease, chief executive of JO Hambro, says the firm plans to cap the fund at between £750m and £1bn: “This is less than half the £2bn Clive managed at Newton. He felt that was too much money to sustain outperformance in the long term.” JO Hambro will cap the fund by either raising the upfront charge or issuing a limited number of shares in the fund, although the latter option is the “less elegant”, she adds.

In addition to this, JO Hambro hopes to recruit three fund managers over the coming months. It has started a search for a global equity manager and is currently assembling databases to identify another UK equity manager and a North American equity manager. It is to search for a UK manager because of the closure of Mark Costar’s UK Growth fund, which now has near to £350m in assets.

Pease (pictured) says the firm is looking at funds domiciled in Continental Europe and the US, as well as the UK. “It is hard to find top-performing managers running UK-domiciled funds because every asset manager is looking at them. Also, once you include offshore funds, the relative performance of managers in this country declines.

We want to find the best managers wherever they are.”

Ideally, adds Pease, any managers recruited will move to London:

“There are swings and roundabouts in terms of whether it is better for a manager to be based where they are investing or in London. We like managers to work together, so they can share ideas.”