The move comes as Old Mutual Wealth (OMW) refines its business model in advance of its parting with Old Mutual plc, scheduled to complete in 2018.
OMW said in a statement it had seen an opportunity to develop the group’s single strategy and multi-asset investment teams as separate distinct businesses because of the individual strength of each.
The move follows media speculation that that Old Mutual Global Investors’ star manager Richard Buxton is in talks with private equity firms about a buyout of the £25bn single-strategy asset management arm.
Multi-asset team
The new multi-asset business will be led by Paul Simpson who has been appointed as chief executive and a member of the Old Mutual Wealth Executive Committee, subject to regulatory approval.
At the end of June this year, the multi-asset team, which comprises portfolio management of multi-asset funds and managed portfolio services as well as fund research, had £16bn assets under management and reported net inflows of £1.6bn during the first half of 2017.
The multi-asset business will operate separately to the single-strategy portfolio range which will continue to be run by Old Mutual Global Investors (OMGI) under the leadership of Buxton as chief executive.
OMW added there will be no changes to the investment management teams or product ranges as a result.
Enhanced future prospects
Paul Feeney, chief executive of Old Mutual Wealth, said: “We continue to refine the long-term strategy of our business and our preparations for listing in 2018 are well on track.
“Investment management remains at the core of the business and multi-asset management and discretionary fund management are cornerstone capabilities. They are critical components to ensure we continue to deliver good customer outcomes, as well as supporting the on-going retention of assets.
“The creation of a dedicated multi-asset business, led by Paul Simpson, is a further step to enhance Old Mutual Wealth’s future prospects.”
