LV= agrees to outsource assets to Threadneedle
LV= Asset Management has finalised the deal to outsource the management of the firm’s £8.5bn of assets and transfer the existing external funds to Threadneedle.
LV=Asset Management says that it expects some redundancies from the deal, which was announced last month.
Under the agreement, the main funds will remain in their current structure when they transfer to Threadneedle and will stay segregated. Staff employed within LV=’s Asset Management business will transfer to Threadneedle. The transfer is expected to take place on October 31, 2011.
LV= group CEO Mike Rogers says: “The outsourcing of the management of LV=’s assets represents another step in our plan to ensure our structure continues to provide best value for our members.”
The board has concluded that member interests are best served by focusing day-to-day operations on the general insurance and life businesses.