UK – Rothschild’s asset management arm has officially been sold to HBOS’s fund management arm, Insight Investment Management, for 61 million pounds (95.8 million euros).

Rothschild Asset Management’s retail and institutional asset management businesses in the UK and Guernsey will be integrated into Insight Investment Management as soon as regulatory approval by the Financial Services Authority is granted, confirmed a spokesman for Rothschild.

The Japanese and Singapore business of RAM, which manage around 1 billion pounds in retail and institutional funds will remain part of the Rothschild group. The private client business of RAM will also remain with Rothschild, and be amalgamated into the worldwide private banking business, headed up by Mike Bussey.

Rothschild announced back in September that it would be selling the retail and institutional asset management units to concentrate on private banking and wealth management. It was believed that the sale would fetch up to 100 million pounds, although Rothschild says that a figure was never publicly discussed, and that predictions in the press were only analyst opinions.

RAM manages close to 11 billion pounds of funds in total, which will take Insight’s funds under management to 68 billion pounds (107 billion euros).

It is hoped that the transaction will enhance Insight’s position in the areas of multi-management and fixed income. RAM’s retail fund of funds/multi-manager business has 0.7 billion pounds in assets under management.

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