Advisers say they are not surprised by Old Mutual’s decision to combine its two asset management arms.
Last week, Old Mutual announced plans to merge both Skandia Investment Group and Old Mutual Asset Managers.
Hargreaves Lansdown head of research Mark Dampier says it makes sense to bring the businesses together to lower Old Mutual’s fixed costs.
He says: “It makes sense, given there is little overlap, with Omam retaining a strong position in bonds and equities, while SIG has a strong multi-asset process. It looks like it will be a good proposition after the RDR.
“It appears that a number of the good managers will not be affected by the move thanks to a lack of overlap, which is positive.”
Skerritt Consultants head of investments Andy Merricks says: “If you were to predict 10 things that will happen in the asset management sector this year, this would arguably be one of them. Old Mutual will have a strong offering for the IFA market with the combined business.
“As with all asset management mergers, I would not like to be an underperforming fund manager at the moment.”
Chelsea Financial Services managing director Darius McDermott says: “This is a complementary fit for both firms. The important thing for Old Mutual is to keep its big fund managers and a lack of overlap means there is no reason this will not happen here.”