Old Mutual Wealth’s strategy is to provide easy access to an integrated customer proposition that encompasses advice, asset management, platform and wealth solutions. Full ownership of Cirilium will deliver this via Intrinsic’s restricted advisers.
The Cirilium proposition consists of five multi-manager portfolios and four passive portfolios, each tailored to a different risk / reward investment profile, and is the core investment proposition for Intrinsic’s restricted financial advisers. 100% ownership by Old Mutual Wealth will ensure the Cirilium proposition will remain at the heart of the Intrinsic restricted advisers’ customer proposition. All of the core Cirilium funds with a five year track record are top quartile performers with very strong risk/return profiles.
Henderson currently acts as the investment manager for Cirilium and the funds are managed by Paul Craig within Henderson’s multi asset team. Following completion, the £1.5 billion* of assets and the investment management of the fund range will transfer from Henderson to Old Mutual Global Investors, the asset management business of Old Mutual Wealth.
Paul Craig will move to Old Mutual Global Investors and continue to be the fund manager on the Cirilium range to provide consistency to advisers and their clients. Paul will join Old Mutual Global Investors’ multi-asset team, led by John Ventre. This team is one of the largest multi-asset teams in the market, currently managing over £5 billion on behalf of customers.
Danny Knight, director of strategic partnerships, will move from Henderson to Old Mutual Wealth where he will be responsible for sales of the Cirilium fund range as part of the distribution team. Separately, Stewart Cazier, Henderson managing director, distribution, will be joining Old Mutual Wealth in the summer as chief operating officer, distribution.
The acquisition and fund transfer are expected to complete in Q4 2014 and are subject to FCA approval.
Paul Feeney, chief executive of Old Mutual Wealth, comments:
“We believe wealth management solutions need to be more accessible to customers. To achieve that we want to offer an integrated customer proposition that encompasses advice, asset management, platform and products. The acquisition of the remaining 50% of Cirilium is an important milestone in achieving that outcome.
“Cirilium has been designed specifically for the customer proposition offered by Intrinsic’s restricted advisers, is very well run and has delivered great performance. The acquisition will deliver continuity and certainty that Cirilium will remain an integral part of Intrinsic’s customer proposition.”
Julian Ide, chief executive of Old Mutual Global Investors, comments:
“We are excited about welcoming Paul Craig into our business later this year and adding further expertise and scale to our multi-asset team, which is one of the most experienced multi-asset desks in the market. All our resources will be available to help Paul further develop and grow the Cirilium fund range and ensure it continues to deliver great customer outcomes.”
Phil Wagstaff, Henderson Global Head of Distribution, said:
"The decision to sell our 50% shareholding is a natural progression following Intrinsic’s acquisition by Old Mutual. Old Mutual remains a valued and important client and we believe it is in the best interests of all stakeholders, most importantly clients, for Old Mutual to manage the fund range as owner of Intrinsic. We look forward to building upon the strong relationship we have with Old Mutual going forward.”
*as at 25th April 2014