Julius Baer Holding has concluded the sale of Julius Baer Investments, its UK-based subsidiary that specialises in fixed income and currency...

Julius Baer Holding has concluded the sale of Julius Baer Investments, its UK-based subsidiary that specialises in fixed income and currency asset management, to its senior management. Under the agreement, Julius Baer will retain a 10 per cent stake in JBIL, now named Augustus Asset Managers. This company, led by the current management of Julius Baer Investments, will continue to be the sub-advisor on a number of Julius Baer funds. Overall assets under management impacted by this management buyout are approximately SFr11 billion. Of this total, approximately SFr8 billion will continue to be managed by Julius Baer, with Augustus appointed as the sub-advisor. Under the terms of the buy-out, Julius Baer will be repaid an undisclosed sum from Augustus’s profits over the next four years. The Swiss bank will retain an observer on the board and will have a veto over new fund launches to prevent them cannibalising the Julius Baer funds that Augustus will run. According to Edward Dove, president of Augustus, the company is already preparing its first computer-driven hedge fund, which would trade currencies. Following approval by the UK’s Financial Services Authority, the transaction became effective as of 11 January 2007.