Old Mutual merges two businesses into one

Savings, investments and insurance giant Old Mutual is planning to combine two of its UK asset management businesses, Old Mutual Asset Managers UK (OMAM UK) and Skandia Investment Group, into a single business.

The theory behind the move is that it will give Old Mutual a significant asset management presence in the UK, allowing it to retain and attract talented investment managers, further develop its product range and investment solutions, and provide high quality service to its customers. The new single business will be the investment engine behind Old Mutual's Wealth Management business.

Julian Ide, currently Chief Executive Officer (CEO) of OMAM UK, has been appointed CEO of the combined business with immediate effect, and will report to Paul Feeney, CEO of asset management for Old Mutual's Long-Term Savings division.

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Paul Feeney said: "Our aim is to become one of the most preferred asset management partners for financial advisers and their customers in the post-RDR market. OMAM UK already has strong in-house fund managers, SIG already has market-leading expertise in managing investment solutions and, through Skandia, we have significant distribution strength. Combining those elements into one package creates a very powerful offering for intermediaries and customers."

The company now plans to undertake a full review of its combined operations and expects to make further announcements about its strategy in the third quarter of 2012.

Shares were trading 0.14% lower at 147.5p by 11:23 on Thursday morning.

NR