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CSAM move to buy SLC will double retail funds

Credit Suisse Asset Man-agement is poised to buy SLC Asset Management, the UK fund management arm of Sun Life Financial of Canada.

If merged, CSAM will almost double its retail funds to £2.85bn from £1.56bn. SLC has total assets under management of around £11bn. As the eighth-biggest pooled pension fund manager in terms of assets, SLC would provide CSAM with a strong foothold in the institutional market. It also has 11 retail unit trusts and has recently increased efforts to penetrate the IFA market.

Analysts have valued SLC&#39s UK fund management operations at around £225m but industry sour-ces say that the competitive bidding could see a price tag as high as £300m.

SLFoC announced its intention to sell SLC around six months ago, with Aber-deen, Friends Ivory & Sime, Britannic, New Star and Aegon all reported to have been in the bidding. Aberdeen says it withdrew because the bidding had reached too high a level.

An SLC insider confir-med a deal has been made but not with whom. CSAM declined to comment.

Hargreaves Lansdown head of research Mark Dampier says: “CSAM&#39s Ian Chimes has grown the firm organically about as much as he can. This is the way to grow it quicker.”

The news comes as CSAM&#39s parent Credit Suisse First Boston ann-ounces 2,000 job cuts and third-quarter losses of £82m for the three months to September 30.

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