Last updated: January 6, 2013 3:40 am

Old Mutual begins hiring for asset drive

Julian Ide, chief executive of Old Mutual Global Investors, hopes to double the size of the group’s assets of £13bn within three years, as part of a plan to improve profitability and regroup from setbacks its parent company endured in 2012.

Mr Ide told FTfm that Old Mutual Global Investors, owned by Old Mutual, was looking to “become more profitable while continuing to deliver positive investment returns”.

The asset manager is in the throes of a rebranding exercise, having dropped the Skandia name from its fund line last year. As part of this venture, the group has been on a hiring push, taking on 21 managers in the last three months who specialise in either sales, distribution or investment analysis. Additional recruitment of fund managers is expected in investment areas throwing up growth potential, including income, equity income, emerging markets and global equities. “We are very focused on attracting and retaining top-class investment talent,” Mr Ide said.

Mr Ide thinks changes brought by the retail distribution review, which abolishes commission payments to UK financial advisers, will bring in business.

“The retail distribution review has opened significant opportunities for Old Mutual Global Investors in the wholesale market,” he said. “Bespoke portfolios of funds are unlikely to be affordable for many clients and, as a result, there is likely to be increased demand for packaged investment solutions such as model portfolios, multi-asset funds and risk-targeted solutions.”

South Africa’s Old Mutual Plc is still struggling to justify the expense of the £4bn acquisition of Sweden’s Skandia, arranged back in 2006. Last year, Old Mutual Wealth, the wealth management group formed by merging Skandia UK, Skandia International and many of Skandia’s European businesses, cut 200 jobs to reduce costs.

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