LONDON (Reuters) - British investment house Threadneedle said its own fund managers will run the entire range of retail funds transferred to its charge in an outsourcing deal with mutual insurer LV=, which is laying off most members of its asset management business.
An LV= spokeswoman said on Tuesday the majority of its asset management staff had been made redundant. “A small team remains ... in the short term to ensure a smooth transition and a further small team will remain to manage the partnership going forward.”
A source at Threadneedle said 14 people, all either analysts or backoffice staff, had joined from LV=, with no fund managers making the switch.
All but one of the people managing the range of funds are existing Threadneedle managers. The exception — Giles Robertson — is former chief investment officer at IMS and FundQuest and joins the firm to help run multi-asset portfolios.
While the outsourcing deal for the 8 billion pounds of assets was announced in August, the firms left it until Tuesday to reveal who would run the individual funds.
LV= chief executive Mike Rogers said earlier this year that outsourcing asset management would enable it to focus on core trading lines within general insurance, protection and retirement solutions.
The funds will adopt the Threadneedle brand but there is no change to fees or investment objectives, Threadneedle said.
Reporting by Chris Vellacott; Editing by Tommy Wilkes