Emerging markets specialist Somerset Capital is set to wind down in the wake of losing St James’s Place (SJP) as a client.
The firm has announced it is in advanced talks with its ACD to transfer its UK funds to a new investment adviser, while it will shutter its wider institutional business in London.
It comes a week after St James’s Place dropped Somerset as manager on a number of its emerging market funds as the wealth manager looks to reduce charges.
The FT reported that Somerset had lost two thirds of its assets under management after losing SJP as a client, bringing managed assets to around $1bn (£794m) from $3.5bn (£2.7bn) at the end of October.
Funds including the £81.8m Somerset Asia Income fund and £65.2m Somerset Emerging Market Dividend Growth strategy are looking to transition to a new investment adviser but will retain the existing fund structure and management teams, the firm said.
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Oliver Crawley, partner at Somerset, said: “It has been a privilege to manage capital for world-leading institutions and clients for over 16 years. I am incredibly proud of all we have achieved in that time through the hard work and skill of our dedicated team.”
On the future of Somerset’s funds, he added: “”The current teams have delivered strong performance for their investors and continue to do so. We hope a transition can be secured which we believe will give the funds a bright future.”
Somerset was founded in 2007 by Conservative MP Jacob Rees-Mogg alongside Edward Robertson and Lord Dominic Johnson, who previously worked together at EM manager Lloyd George Management.
