452 Capital to restrict new inflows
452 Capital, the boutique funds management operation started by ex-Perpetualsenior analyst Peter Morgan, will refrain from taking on any further large-scale clients for the remainder of the calendar year after reaching $1 billion in funds under management (FUM).
Morgan says the group’s ambition has been to reach $3 billion in FUM before shutting the operation to new business entirely. However, Morgan says since launching last year it has picked up six institutional clients and one retail client to reach the $1 billion mark.
“We have marketed the group heavily so far, but now we have shut that down. We will run with the current level of funds for the coming 12 months to bed the business down, so therefore we won’t be accepting any more large-scale clients,” Morgan says.
“We have been focusing on the investment management of the group for the last few months and have had good performance, which is where our full commitment must be.”
Morgan says the move to restrict funds inflow was to ensure the group could reach the $3 billion target without overloading the boutique manager.
“It’s a bit like a race horse at the barrier. We’ve jumped out from the gate but we have to be sure we can finish the race as well,” Morgan says.
452 Capital was set-up by Morgan and Warwick Negus late last year, with the group signing a deal withColonial First Statein December to have its funds distributed to the retail, wholesale and master trust markets.
As a result of the deal, Colonial is the only retail client of 452 Capital, with the former placing the manager on its FirstChoice investment platform in recent weeks.
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Jason Spits
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