Old Mutual splits off multi-asset business

Money-Cash-20-Note-Currency-GBP-700x450.jpgOld Mutual Wealth is set to split off its multi-asset business as it prepares to break away from the Old Mutual group.

Old Mutual says both its multi-asset and single strategy investment teams are strong enough to survive as separate, distinct businesses, before the group’s “managed separation” next year.

The multi-asset arm will run by investment director Paul Simpson, and Old Mutual says it has no plans to reshuffle managers or product ranges.

Old Mutual Wealth chief executive Paul Feeney says: “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.”

Old Mutual Global Investors chief executive Richard Buxton will stay in charge of the single strategy fund business.

News broken by Sky News over the weekend suggests that Buxton himself could be looking to buy out what will remain of OMGI, as he is reportedly talking to private equity firms about a takeover.