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Old Mutual acquires Henderson/Intrinsic investment arm

Old Mutual Wealth is to acquire Henderson Global Investors’ 50 per cent stake in Cirilium so that it owns the business outright.

Cirilium is an investment joint venture between Henderson and adviser network Intrinsic

The multi-manager investment range had £1.5bn of assets at 25 April and has been run by Henderson since 2008. 

Money Marketing revealed in April that the two parties were considering a deal.

Old Mutual will now own the business outright, after taking a 50 per cent share when it acquired Intrinsic in February. 

As part of the agreement, Old Mutual Wealth has appointed Henderson Global Investors managing director of distribution Stewart Cazier as chief operating officer of distribution.

Fund manager Paul Craig will move to Old Mutual Global Investors and continue to oversee the Cirilium proposition, joining Old Mutual Global Investors’ multi-asset team run by John Ventre. 

Henderson director of strategic partnerships Danny Knight will also move to Old Mutual to oversee Cirilium sales.

Money Marketing reported in December that Old Mutual was closing in on a deal to acquire Intrinsic. 

When the deal was announced, Old Mutual confirmed Cirilium would remain on the Intrinsic investment panel, alongside Old Mutual’s investment products. 

Skandia Investment Solutions was added to the platform panel and its protection products were added to the Intrinsic panel.

Old Mutual Wealth chief executive Paul Feeney says: “We believe wealth management solutions need to be more accessible to customers. To achieve that we want to offer an integrated customer proposition that encompasses advice, asset management, platform and products. The acquisition of the remaining 50 per cent of Cirilium is an important milestone in achieving that outcome.

“Cirilium has been designed specifically for the customer proposition offered by Intrinsic’s restricted advisers, is well run and has delivered great performance. 

The acquisition will deliver continuity and certainty that Cirilium will remain an integral part of Intrinsic’s customer proposition.” 

Henderson Global head of distribution Phil Wagstaff says: “The decision to sell our 50 per cent shareholding is a natural progression following Intrinsic’s acquisition by Old Mutual. 

“Old Mutual remains a valued and important client and we believe it is in the best interests of all stakeholders, most importantly clients, for Old Mutual to manage the fund range as owner of Intrinsic.”

OMGI chief executive Julian Ide says: “We are excited about welcoming Paul Craig into our business later this year and adding further expertise and scale to our multi-asset team. 

“All our resources will be available to further develop and grow the Cirilium fund range and ensure it continues to deliver great customer outcomes.”

Investment joint ventures

  • Octopus and Openwork launched multi-manager fund range Omnis Investments in 2008. It is majority-owned by Openwork with Octopus the minority shareholder. It includes four multi-manager funds run by Octopus, three multi-asset funds with Threadneedle and seven single strategy funds. The range has £1.35bn in assets.  
  • In 2012 Sesame and Henderson launched Optimum, a range of four multi-manager funds. The funds are designed to be mixed, with the weightings based on Sesame Bankhall Group’s risk profiling tool designed by Oxford Risk. Sesame refused to comment on the volume of assets. 
  • In March 2013 Paradigm pulled out of plans to launch a joint venture investment management business with Henderson. Paradigm said: “The need to create a joint venture to achieve what we wanted for the business and our partner firms was unnecessary.” 

Paradigm-owned discretionary fund management firm Tatton Investment Management, run by Lothar Mentel, still allocates assets to Henderson funds. 

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