UK’s LV= hands retail fund business to Threadneedle
Threadneedle is preparing to take on the management of UK asset manager LV=’s retail fund range.
The group said it is in exclusive discussions with Threadneedle to take over its existing external funds.
The talks will take place over the next few weeks with the aim of reaching a final decision on the proposal at the start of next month.
LV= put its fund management arm up for sale in April, appointing Fenchurch Advisory to oversee the transaction, according to reports.
LVAM manages about £8.4bn of assets for a range of clients including private investors, institutions and private client discretionary managers.
The group’s fund range includes multi-manager funds run by former FundQuest duo Richard Timberlake and Paul Kim, as well as Corporate Bond and Fixed Interest funds, a property portfolio, and an equity income offering managed by head of UK equities Graham Ashby.
However, LVAM’s retail funds have to date struggled to attract assets on the same scale as its competitors.
Mike Rogers, LV= group chief executive, said “LV= has undergone a significant turnaround since 2007 and this is part of us ensuring our structure offers best value for our members.
“The LV= board is considering outsourcing asset management to enable it to focus on its fast expanding core trading lines within general insurance, protection and retirement solutions, as well as ensuring good investment returns for our with-profits members.”
Crispin Henderson, chief executive of Threadneedle, added: “Threadneedle is pleased to be working with LV= regarding management of the Society’s assets and its existing external funds.
“We believe our very strong track record of long-term outperformance and our experience in managing multi-asset funds for large and complex institutional clients means we are well placed to provide a compelling solution for LV= and its clients.”