View more on these topics

MBO emerging as an option for R&SAI staff

Senior managers at Royal & Sun Alliance Investments are believed to be considering a management buyout if a strategic buyer cannot be found.

The managers are believed to be concerned that many of the potential suitors for the company – thought to include Aegon, Aberdeen and Friends Ivory & Sime – may seek to strip the company of its assets and jettison high-ranking staff.

But rather than take the risks of a MBO, they are thought to prefer a buyer who would take a strategic interest, wanting to build up the business with its existing team.

Candidates on this wish-list are believed to include GE Capital, German insurer Allianz and Swiss Life, all of which do not have an asset management presence in the UK.

But such buyers have not been forthcoming, leaving the firm vulnerable to a takeover from a company more likely to consolidate the business and replace the existing management.

The company has been under review by its parent group since last year, alongside R&SA&#39s life and pension arm. A share-incentive scheme offered to managers was withdrawn when the business was put under review, thought to have left them disillusioned.

An industry insider says: “If they are faced with no buyers wanting them as a platform, the management is likely to see an MBO as a better option than consolidation. It would be the lesser of two evils.”

Director of retail funds William Russell says: “Any rumours about the future of R&SA Investments are pure speculation.”


Smile Invest – Growth

Tuesday 26 February, 2002 Type: Portfolio management Aim: Growth by investing in UK growth funds Minimum investment: Lump sum £250 Investment split: Choice of ABN Amro UK growth, Artemis UK growth, Fidelity special situations, HSBC UK income and growth Income facility: Yes Charges: Initial 1.375%, annual 1.38% Commission: None Contact:

Smile joins up ethical funds

Internet bank Smile has joined forces with Co-operative Bank Financial advisers to offer Smile invest ethical, a portfolio management service that packages four ethical funds from Henderson, Gerrard, Friends Provident and Norwich Union.Investors can choose to invest in any number of funds, depending on their requirements. The funds share a reliance on ethical screening, so […]

Part-time pensioners

Much of the discussion about retirement is framed in a rather gloomy way. For example, one problem is that the period of retirement for many people is getting steadily longer.A longer period after work does pose challenges for the individual. All other things being equal, someone aiming at a given income for a longer period […]

Investment update

Britannic Asset Manage-ment is offering a 1 per cent discount on its four global sector funds until April 30. The discount will take the initial charge on the global healthcare, global technology, global resources and global financials funds to 4.25 per cent from 5.25 per cent. The funds have an annual charge of 1.5 per […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm