LVAM finalises outsourcing deal with Threadneedle

LV= Asset Management said it expects to see some staff redundancies as it finalises its deal to outsource the management of its funds to Threadneedle.

All the LV= funds will remain in their current structures and stay segregated when they transfer across to Threadneedle on 31 October, regardless of overlap with its own fund range, LV said.

Threadneedle will then decide how the final fund offering will look, including merging away products where there are similarities.

LV= said staff in its asset management business will transfer to Threadneedle, although it expects some roles will be made redundant. The final details of the deal will be completed over the coming weeks, the firm said.

Mike Rogers, LV= group CEO, said: “The outsourcing of the management of LV=’s assets represents another step in our plan to ensure our structure continues to provide best value for our members.

“We look forward to building a successful ongoing relationship with Threadneedle as manager of the Society’s assets.”

Last month Investment Week revealed LVAM was in exclusive talks with Threadneedle to take over its existing external funds, allowing it to focus on its core life and insurance business.

LVAM manages about £8.4bn of assets for a range of clients including private investors, institutions and private client discretionary managers.

The group's fund range includes multi-manager funds run by former FundQuest duo Richard Timberlake and Paul Kim, as well as Corporate Bond and Fixed Interest funds, a property portfolio, and an equity income offering managed by head of UK equities Graham Ashby.