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RAM deal puts Insight among big fund firms

Insight Investment has bought Rothschild Asset Management for £61m in a deal which the HBOS subsidiary says elevates it into the upper tier of UK fund management groups.

The deal, which prices the business at just 0.55 per cent of its assets under management, includes RAM&#39s multi-manager operation as well as its range of retail and institutional funds, which total £1.4bn and £9.6bn respectively.

The deal also includes more than £20m of net cash but not the Rothschild brand.

Insight, which now has £68bn under management, says RAM represents the best possible fit and the firm is “great value”. The Rothschild family is believed to have been hoping for £100m-£150m but will not comment on the price, saying it is “pleased” with the deal.

With a significant amount of fund overlap, Insight admits that there will be redundancies and fund consolidation in the new year.

RAM head of retail Nick Hodgson says he will leave the company after the integration, which should be finalised next summer, subject to the deal getting FSA approval.

However, a number of senior appointments have already been made. David Kiddie, currently RAM equities chief investment officer, becomes Insight&#39s retail CIO while Gary Mairs, Insight&#39s managing director, becomes deputy chief executive and chief financial officer.

RAM fixed-income CIO Abdallah Nauphal becomes Insight&#39s fixed income manager director while Insight chief investment officer Michael Deakin retains overall responsibility for fixed income, cash, equities and property fund management.

David Norman, Insight&#39s marketing director, becomes retail managing director.

He says: “It is a great deal. It puts us in a world-class position very quickly and the fit could hardly be better. Multi-manager was something we were keen to get in to and this gives us scope to grow in that area.”

Hodgson says: “RAM will be able to benefit from being part of a much bigger organisation – Insight is spending money when most companies are not.”

Simpsons of Brighton IFA partner Mark Waters says: “Insight is being very aggressive and this is a very good deal for them. RAM was never big enough to survive this market.”

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