Old Mutual plans to merge investment arms Old Mutual Asset Managers and Skandia Investment Group.
Omam UK chief executive Julian Ide has been appointed chief executive of the combined business with immediate effect, reporting to Old Mutual chief executive of asset management for the long-term savings division Paul Feeney.
Skandia chief investment officer James Millard has been appointed chief investment officer of the combined business.
The senior management team is undertaking a full review of the combined operations and expects to make further announcements about its strategy in the third quarter of the year. The firm declined to comment on how many jobs are at risk.
In the interim, Old Mutual says the two businesses will continue to operate as before and there will be no immediate affect on advisers or existing customers.
The combination of Omam UK and SIG will create an asset manager with almost £8bn of funds under management. Old Mutual acquired the entire Skandia business in February 2006.
Feeney says: “Our aim is to become one of the most preferred asset management partners for financial advisers and their customers in the post-RDR market. Omam UK already has strong in-house fund managers, SIG already has market- leading expertise in managing investment solutions and, through Skandia, we have significant distribution strength. Combining those elements into one package creates a very powerful offering for intermediaries and customers.”
A Skandia Investment Group spokes-man says: “This is not about job cuts, although when you bring two businesses together, there will be some overlap. We are looking to grow the business and are also recruiting for new roles such as a global head of distribution.”