Old Mutual solidifies US asset management business
USA - Old Mutual has taken a step forward in the development of its US investment management business by forming Old Mutual Asset Managers (US) - aligning its group of affiliates following the purchase of United Asset Management (UAM) last September.
The move also reflects the recent acquisition of revenue streams from Pilgrim Baxter, its US funds franchise and retail distribution platform.
The affiliates of Old Mutual, representing total assets under management of US$70bn, comprise Analytic Investors; Barrow, Hanley, Mewhinney & Strauss; Clay Finlay, Dwight Asset Management, NWQ Investment Management and Provident Investment Counsel. According to the agreement the firms will modify their economic relationship with Old Mutual from a revenue-sharing to a profit-sharing basis.
“ The creation of OMAM(US), combined with our UK and South African operations, gives us a significant international platform in asset management,” says Eric Anstee, chief executive of Old Mutual’s financial services.
The companies, keeping their own brands, will also provide coverage of US asset markets and global products to existing Old Mutual Group clients in Africa and Europe.
Brian Malone and Brian Baskir of Old Mutual and Richard Robie and George McClelland from UAM will join the board of OMAM(US). Eric Anstee, the chief executive of financial services of Old Mutual becomes chairman of the board.
Other UAM affiliates will remain with UAM’s current management, led by chief executive Jim Orr, although the group says some UAM affiliates may join OMAM(US) over time. Old Mutual says there will be no mass sale or forced consolidation of firms, however.