Swiss private bank Julius Baer Holding has entered into a buyout transaction with the management of Julius Baer Investments, its UK-based subsidiary that specialises in fixed income and currency asset management.
Under the terms of the deal, 90% of the equity of Julius Baer Investments, which will now be called Augustus Asset Managers, has been transferred, subject to restrictions, to a company owned by Julius Baer Investments’ management and employees. Julius Baer Holding will retain a 10% stake. The transaction was approved by the FSA and became effective on January 11 2007.
As an independent asset manager, Augustus says it will focus on the fixed income and currency asset management products that were developed as Julius Baer Investments, including both relative and absolute return management strategies. It has total assets under management of approximately $9 billion, offering long only/traditional funds, hedge funds and absolute return funds across the risk spectrum.
Augustus also announced the appointment of Howard Carter as non-executive chairman of the new company. He was most recently chief executive of F&C Asset Management, Friend Provident’s asset management business.
Edward Dove, president of Augustus Asset Managers, says: “We will continue to build our business spread across the entire spectrum of fixed income and currency products from long-only to absolute return and single strategy hedge funds. We will continue to act as a sub-advisor both to the Julius Baer Cayman-based hedge funds which are listed on the Irish Stock Exchange and to those Julius Baer Luxembourg SICAV mutual funds that we currently sub-advise. We are looking to increase the segregated accounts business that we have developed since 1983. We do not intend to alter our investment philosophy, products, processes or people but rather we aim to continue to evolve as the markets change.”
Tim Haywood, CEO & CIO of Augustus Asset Managers, adds: “At one level, all that changes is the name of the company. Customers and counterparties should be reassured that the strengths of the company are being preserved. On the other hand, this is a very exciting development. We see this change as beneficial to our investors and clients, as it assures continuity of an already stable team and clarifies our position within the investment management industry. With this extra dimension to our company, we will be better able to retain and attract the most talented employees.”
The management structure of the company remains largely the same, with day to day operations being guided by a management committee comprising Dove, Haywood, Jeremy Shacklock (Finance), Dick Howard (Risk) and Michael Allen (Operations).