The acquisition includes £7.1bn of assets under management in JOCHM’s actively managed funds and segregated mandates as well as a 9.9% interest in its private client business.
Under the terms of the agreement there is to be no change in the day-to-day operations of JOHCM and the UK boutique will operate as a stand-alone boutique in the BTIM group.
Gavin Rochussen and Jamie Hambro are to continue in their roles as JOHCM’s CEO and non-exec chairman and there is to be no change to the group’s name. All existing managers are to still have full discretion over investment decisions and over the implementation of their strategies.
In addition, the group says “key principles of fund manager compensation remain unaltered but have been enhanced to provide additional long-term retention to preserve the existing alignment between employees, clients and shareholders in the business.”
BTIM, which is listed on the Australian Stock Exchange, is based in Sydney and has more than A$34bn in funds under management. It operates a boutique model across a range of products including Australian equities, fixed income, global macro and cash.
JOHCM and BTIM say the two businesses are complementary, with compatible approaches to investment and a strong cultural fit. The deal is still subject to FSA approval and it is expected the acquisition will be completed in the fourth quarter.
As to the private client side of the business, James Hambro & Partners LLP is to be acquired by its key partners, with JOCHM retaining the 9.9% stake as part of the deal. Its senior management team is also unchanged with Jamie Hambro continuing as chairman and Andy Steel staying as CEO.
The remaining part of the JOHCM Group, North Atlantic Value LLP, which manages the North Atlantic Smaller Companies Investment Trust, Oryx International Growth Fund and Trident Private Equity funds, will not be acquired by BTIM and will be owned by Christopher Mills and run by its existing management team.
