Aviva Investors to sell US equity manager River Road

Aviva Investors has announced an agreement to sell River Road Asset Management, its US equity manager business to Affiliated Managers Group.

The company states it remains “committed to the US market” and still has a strong business based in Chicago, but that the transaction “is in line with Aviva Investors’ strategy of simplifying its business and moving towards an integrated operating model and organisational structure”.

River Road was acquired by Aviva Investors in 2009 and focuses on managing US value equities, and it will remain the manager of Aviva Investors’ US Equity Income Funds.

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Jason Windsor, group chief strategy and development officer, said: “A simpler, more focused business will help Aviva Investors become a stronger third party manager and increase its contribution to the group.

“Aviva Investors is focused on becoming a fully-integrated asset manager offering products that deliver client outcomes with low volatility. A boutique US equity manager does not fit with this strategy. We look forward to a continued relationship with River Road.”

The sale, which is subject to obtaining consent and approval, expected to complete in the third quarter of 2014. The sale represents a modest premium to group net asset value and will increase both the IGD solvency surplus and economic capital surplus by £0.1bn.