Henderson New Star has confirmed that Richard Pease’s European Special Situations fund will be launched on October 1. The vehicle is the first product launch from the group since Henderson acquired New Star in April.
As revealed in Fund Strategy in May, the New Star European Special Situations will have a value bias, in line with Pease’s own investment style. It will focus on small- and mid-cap stocks and will be a concentrated portfolio of typically between 35 and 55 stocks. Pease will look for unloved quality companies, and those in turnaround or recovery situations that might be the subject of takeover bids.
The group plans to cap the fund when assets reach £500m in view of its small-cap bias.
The fund will primarily aim for capital growth but will also offer an income share class with an estimated yield of between 3% and 3.5%, the group says.
It opens for investment on September 17.
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