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LGT asset management division is up for sale

Liechtenstein Global Trust is putting its £63bn asset management division up for sale.

LGT, which is privately-owned by Prince Philipp of Liechtenstein, is selling off the fund management arm to concentrate on its private banking division.

LGT says it decided to sacrifice its asset management business after realising it had insufficient capital to ensure both companies&#39 ability to compete in the future.

Experts believe the asset management business, which includes UK-based GT Global, will carry a price tag of about $1.25bn.

GT Global Investment Funds managing director Mike Webb says: "The reason is the board of LGT decided both businesses needed capital to compete, so it decided to sell the fund management arm to concentrate on private banking. We have been doing a fundamental review of both divisions for the past six months. The view was taken that both divisions had excellent potential for growth. Both required injection of capital and it was felt it was better to optimise one by concentrating on private banking."

Webb denies suggestions that LGT was forced into a deal due to difficulties absorbing last year&#39s $300m acquisition of US-based Chancellor Capital Management.

The asset management division employs 1,234 people in 20 offices worldwide. This includes GT Global Mutual Funds in North America and GT Global Unit Trusts in the UK.

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