UK- London based asset manager, Morley Fund Management has won a £860m (€1.3bn) mandate from the Royal Bank of Scotland (RBS) to run the bank’s bancassurance funds. Morley replaces Newton Investment Management following a beauty parade organised by consultancy firm, Watson Wyatt.

London-based Newton originally took over the account when RBS acquired Newton in the 1990s but RBS began marketing its insurance products with CGNU, Morley’s parent, after selling Newton to Pittsburgh-based Mellon Financial Corporation in 1998.

A spokesman for Newton refused to comment on the loss but said the company wasn’t too concerned as the funds did not generate “particularly good revenue anyway”.

The spokesman said the loss of the bancussurance funds did not impede on its relationship with RBS as asset manager for its £2bn staff pension fund.

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