Old Mutual Wealth  

OMGI loses multi-asset unit in shake-up

OMGI loses multi-asset unit in shake-up

Old Mutual Global Investors (OMGI) is to split out its multi-asset business from its single strategy line ahead of its parent firm's listing next year, lending weight to suggestions the latter business may not form part of the company in the future.

OMGI investment director Paul Simpson will take over the multi-asset arm, with current chief executive Richard Buxton (pictured) leading the remaining single strategy fund house.

Parent firm Old Mutual Wealth (OMW) said that both the single strategy and multi-asset business lines had grown "in their own right" since the OMGI was created in 2012, and both had potential to grow as separate businesses.

Article continues after advert

However, the firm was at pains to highlight how multi-asset investing was at the core of OMW's proposition ahead of its 2018 listing. It added that it was assessing "internal and external structures for the single strategy business to continue to develop it further".

The firm's multi-asset business is heavily integrated with OMW and its discretionary business Quilter Cheviot - managing a range of multi-asset and multi-manager funds, and model portfolios.

OMW is currently undergoing a "managed separation" from Anglo/South African insurance giant Old Mutual and intends to list next year. It is seemingly possible the firm could go public without its dedicated single strategy active management business run by Mr Buxton since 2015.

The move comes as rumours surfaced over the weekend, following reports by Sky News, that Mr Buxton could potentially be leading a private equity-backed management buyout of OMGI, without the multi-asset business.

OMGI's single strategy business is known for both active equity and fixed income franchises, including multi-billion pound UK equity funds run by Mr Buxton and Richard Watts.

OMW said: "Given the strengths of both of the investment teams, OMW believes there is an opportunity for both multi-asset and single strategy to develop as separate distinct businesses."

Paul Feeney, chief executive of OMW, said the move fell part of the long-term strategy and preparation for listing in 2018.

"Investment management remains at the core of the business and multi-asset management and discretionary fund management are cornerstone capabilities," he added.

taha.lokhandwala@ft.com