The wealth management arm of Old Mutual, an Anglo-South African insurance and financial services business, is readying for a new chapter as it announced it will divide its fund management business.
The firm will separate its single strategy and multi-asset investment approaches, with Old Mutual Wealth focusing on multi-asset and its former subsidiary Old Mutual Global Investors (OMGI) narrowing its mandate to single strategy.
A spin-out appears to be being explored for OMGI, as Old Mutual Wealth stated it would assess “internal and external structures for the single strategy business”. It will continue to be led by former Schroders star Richard Buxton, who according to Sky News has been approached by investors including private equity firm TA Associates to head a buyout.
Old Mutual Wealth's chief executive Paul Feeney 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.”
Going forward, former Deutsche Bank, UBS and HSBC veteran Paul Simpson will lead Old Mutual Wealth, which had £16bn in assets under management at the end of June.
In the first half of this year, the firm saw £1.6bn of net inflows to its multi-asset funds.
The Old Mutual group has recently been undergoing a fundamental reshuffle. Its four key businesses – Old Mutual Wealth, Old Mutual Emerging Markets, South African lender Nedbank and US firm Old Mutual Asset Management – are each being established as standalone entities.
At the end of last year, the whole group had more than 19.4m customers across the world and a total of £212.3bn in assets under management.