Vertex subsidiary Jessop Fund Managers has transferred the Edinburgh Portfolio – subsidiary of Aberdeen Asset Management – across to its book.
The £162m portfolio will now be run by JFM, which currently manages 15 former Gartmore funds on behalf of over 4,600 private investors.
The three new Aberdeen funds are valued at £162m with 9,000 private investors, doubling JFM’s total funds under management to £291m.
Under the new framework, Aberdeen will retain its current investment management responsibility but JFM will take over the management responsibilities for the funds and the associated regulatory functions which accompany this.
Whilst the funds are all closed to new schemes, they remain open to existing investors and new investors within the current schemes.
Vertex Life, Pensions and Distribution managing director David Child says: “This represents an important growth in scale for our Jessop Fund Management business with all our investors standing to benefit from the increased economies which the greater scale allows. It is also a perfect match with each party playing to its skill-set.
“We have substantial experience in pensions administration, having worked with many major financial institutions previously and this allows Aberdeen to focus on their core expertise in high quality investment management.”
Aberdeen head of collective funds Gary Marshall says: “Given the complexities and particular demands of the UK pensions market, we believe that the long term interests of the unitholders will be best served if the management and operation of the existing schemes is transferred to Jessop.
“Jessop is focussed on operating UK personal pension schemes and has particular expertise in that area. At the same time unitholders’ investments will continue to be managed by Aberdeen’s highly regarded investment teams. This makes sense for Aberdeen, Jessop and, most importantly, for our joint clients.”