Amid widespread publicity, Société Générale Asset Management (SG-AM) has announced plans to set up a UK subsidiary with the appointment of Nicola Horlick, formerly of Morgen Grenfell Asset Management and John Richards of Mercury Asset Management as joint managing directors.

The new subsidiary, Société Générale Asset Management UK, will specialise in balanced products. It remains un-clear how the relationship between the French parent company, its UK subsidiary, the recently formed SGAM in Paris and SGAM UK will function.