Old Mutual to drop Skandia name in asset management overhaul
The Skandia label could disappear in the UK as part of an overhaul by parent Old Mutual, which is rebranding its merged asset management businesses as Old Mutual Global Investors.
Investment Week understands an announcement is due to be made by the group this week revealing the new name, as well as further details of a re-structure of the group’s wealth management arm.
The move comes after a comprehensive review of the business with Skandia employing external business management consultants.
It is six years since Old Mutual bought Skandia in a £3.6bn deal, during which period there have been several internal reorganisations and personnel moves.
In April, Old Mutual announced it would unify its two UK asset management businesses, Skandia Investment Group and Old Mutual Asset Managers UK, into a single unit.
The unit falls under the remit of the Wealth Management business (OMWM) run by former BNY Mellon head of distribution Paul Feeney(pictured). The division recently reported a decline in profitability and inflows during the first half of this year.
Feeney’s division also includes Skandia UK, Skandia International (offshore), Skandia Europe and Wealth Management Europe.
There has also been mounting speculation about how the £20bn Skandia platform – a key part of the wealth management business – would position itself post-UK Retail Distribution Review.
Skandia and a number of its peers have relied on rebates from fund groups to allow them to offer lower priced funds to investors, but the FSA has moved to ban rebates, causing platforms to re-think their strategies.
Last month Skandia unveiled a new tiered charging structure, which will see investors receive unit rebates from fund managers directly. Investment Week understands the platform is looking at targeting the restricted advice market by offering a smaller number of funds, around 50, as part of a core solution range.
It is not yet known whether the Skandia brand will disappear from its platform, headed up by UK CEO Peter Mann. Skandia declined to comment on the changes.
This article was first published on Investment Week