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New Star sells Heart of Africa fund to Duet
7 Apr 2009New Star Asset Management, the troubled fund manager founded by John Duffield, has sold its high-profile Heart Of Africa fund to its rival Duet Asset Management for an undisclosed sum.
Duffield abruptly suspended dealings in Heart Of Africa in December, when it was valued at around $40 million (£27.3 million), because it had difficulty with clients withdrawing funds.
Ayo Salami, Duet's director of African Business Research, is planning to “rebalance” the New Star fund, which is invested in sub-Saharan Africa with about 40% of its assets in Ghana and Malawi. Salami said: “It has some very good stocks in it but some of the stakes are simply too big.”
New Star itself was in such huge difficulties it needed a takeover. It was sold to fund management firm Henderson, a deal which closed yesterday.
According to Reuters, global emerging markets — which have suffered in the credit crunch — are up 30% in the past month. Salami said Duet's Africa fund is still down 40% from last year's peak.
