Argonaut Capital Partners and Ignis Asset Management are pleased to announce a restructuring of the joint venture designed to support the next phase of Argonaut’s growth and development. Argonaut, a European equity specialist boutique, was founded six years ago in 2005 and currently has £1.1 billion of funds under management. The company offers market leading European Alpha and Equity Income products1 to UK and European investors.
Argonaut Capital Partners will take management control, owning 60% under the new structure with Ignis reducing its equity stake from 50% to 40%. This will enable Argonaut to develop as an independent business, under a single brand and with dedicated management. Argonaut will expand its investment team and management resource and develop its own UK distribution capability. Ignis will continue to distribute Argonaut’s funds in Continental Europe.
To facilitate the transition to a standalone business, and to enable Barry Norris and Olly Russ, Argonaut’s founding partners, to remain focused on investment performance and client service, the company will be announcing the appointment of a Chief Operating Officer who will oversee the transition and manage the day-to-day operational functions. The transition will be implemented in a controlled manner over the course of the next 12 months.
Ignis’ interest in Argonaut will form part of Ignis Partners, an Ignis Business Unit established in 2010 to hold, support and develop its boutique investments. Ignis Partners also holds investments in Hexam, the emerging markets boutique, which transitioned to a similar structure in July 2010 and Castle Hill Asset Management, the specialist credit investment manager, which was established along equivalent lines when the business was launched in January 2010. Ignis Partners also holds a 50% equity stake in Cartesian, which Ignis remains committed to supporting and developing.
Barry Norris, Partner, Argonaut Capital Partners, says:
“We believe that this evolution of our business model from a joint venture to an independent entity is appropriate to Argonaut’s current stage of development. We look forward to making further announcements in due course.”
Chris Samuel, Chief Executive of Ignis Asset Management, comments:
“We are pleased to have agreed these exciting plans for the next stage of Argonaut’s growth. It is very much a part of our strategy to incubate our current joint ventures and then to transition them to an independent model when they reach an appropriate stage so as to best support their development and the services we provide to investors.”
Olly Russ, Partner, Argonaut Capital Partners, says:
“Barry and I intend to develop Argonaut’s capabilities within our core European equity franchise, which we believe will be good for our investors. We are delighted that we will continue to be supported by Ignis, who have contributed greatly to the development of the business in its joint venture stage and that they will remain a significant and committed shareholder as we become an independent Argonaut.”
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Notes to editors:
Argonaut Capital Partners
Argonaut Capital Partners is a specialist European equities boutique run by respected fund managers Barry Norris and Oliver Russ. Argonaut was founded as a joint venture with Ignis Asset Management in May 2005 and currently manages £1.1 billion of assets on behalf of retail and institutional clients. Argonaut manages six funds: the Argonaut European Alpha Fund; Argonaut European Income Fund; Argonaut European Absolute Return Fund; Argonaut European Enhanced Income and two Dublin domiciled Pan European SICAVs. Argonaut also manages European segregated portfolios on behalf of institutional clients.
Barry Norris
Barry Norris began his career as an Investment Analyst at Baillie Gifford. He started managing money as Head of European Equities at Neptune, where he launched the Neptune European Opportunities Fund in November 2002. As a founding partner of Argonaut in 2005, Barry is responsible for the European Alpha, European Absolute Return and Pan European Alpha Funds. Since running money in 2002, Barry has beaten the index in nine out of 10 calendar years and has produced a total return of 246% versus a sector average of 130%*
Oliver Russ
Oliver Russ began his career at Orbitex in 1998 where he worked on European equity and equity income funds and was responsible for running the Orbitex UK Equity Fund since inception in March 2000. In 2002 Oliver joined Invicta Investment Management, a privately owned hedge fund, and joined Neptune Investment Management in April 2004. As a founding partner of Argonaut in 2005, Oliver is responsible for the European Income, European Enhanced Income and Pan European Income Funds.
Oliver graduated from Oxford University in 1996 with a first class honours degree in Classics
*Performance prior to Argonaut relates to the Neptune European Opportunities Fund
Source: Lipper/Internal, bid to bid net income reinvested excluding initial charge to 29 July 2011. Barry Norris was fund manager for the Neptune European Opportunities Fund from launch 29/11/02 to 06/05/05. Barry became manager of the Ignis Argonaut European Alpha Fund on 12/05/05. Average sector performance has been used for the period between Barry Norris leaving Neptune and joining Argonaut.
Ignis Asset Management
Ignis Asset Management traces its roots back to 1899 and provides the stability of a well-capitalised investment business with some £76bn** in assets under management, c530 employees and a global presence distributing in the UK, Europe, the US and Asia. From this solid base, Ignis is seeking to build on its comprehensive fund range to develop new innovative products and services. As the asset management business of the Phoenix Group, the largest UK consolidator of closed life assurance funds, Ignis is well placed to make this step forward.
Performance, and the risk taken to achieve it, is at the heart of the business model. Ignis believes that entrepreneurial teams operating in standalone business units, but at all times within a rigorous risk framework, are best placed to meet, or exceed, clients’ performance needs. The business units are:
• Ignis Fixed Income – a large, experienced team, led by Ignis Chief Investment Officer, Chris Fellingham. It manages c£45bn8, split into key areas of expertise: rates, credit, liquidity, specialist fixed income and asset backed securities.
• Ignis Equities – the Ignis Equities team comprises five desks focusing on UK, US, Europe, Asia Pacific, Global and Emerging Market equities. The team is headed by Chief Investment Officer - Equities, Mark Lovett, and manages over £13bn8 of assets.
• Ignis Real Estate – dedicated to actively searching out value in the commercial property market, focusing on quality rental income streams in order to generate solid returns. The team is headed by Gary Hutcheson, Managing Director of Ignis Real Estate, and manages approximately £2.4bn8 in collectives including the Ignis UK Property Fund, the UK Commercial Property Trust, and segregated portfolios.
• Ignis Advisers – a specialist Fund of Funds team with capabilities spanning the alternative investments spectrum. The Advisers range includes a successful Fund of Hedge Funds, a Fund of Real Estate, Fund of Private Equity and Retail Multi-Manager capabilities. Managing approximately £2.4bn8, the Ignis Advisers team is led by Michiel Timmerman.
• Ignis Solutions – offers Asset Liability Matching (ALM) and Liability Driven Investment (LDI) plus Multi-Asset Portfolio Management solutions. The team address unique client requirements by solving complex risk/return problems, risk mitigation strategies and capital management.
• Ignis Partners – through joint ownership agreements, this unit provides entrepreneurial fund managers with the support of a large organisation through the early stages of their business development. Ignis partners include; Argonaut, European equity specialists; Cartesian, fundamental UK investors; Hexam, global emerging markets specialists; and Castle Hill, a specialist credit investment manager.
**Source: Internal at 31 March 11 (including £9bn of stock lending)
Phoenix Group
Phoenix Group Holdings is the parent of Ignis Asset Management and is the UK’s largest specialist consolidator of closed life funds with more than six million policy holders and £67 billion of assets under management†.
†Source: as at 31 December 2010