No LVAM managers to join Threadneedle

Threadneedle will not be hiring any of the fund managers from LV= Asset Management when the assets move across at the end of the month, Investment Week understands.

The managers, including high profile hires such as Graham Ashby, Paul Kim and Richard Timberlake, will see their funds transferred to Threadneedle managers on 31 October.

Around 10 members of staff out of over 70 are expected to move across to Threadneedle, of which none will be fund managers.

Investment Week revealed in early July LV= was in exclusive discussions 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 asset management arm was put up for sale in April, and the deal with Threadneedle was finalised in August, when LVAM said it expected some staff redundancies.

All the LVAM funds will remain in their current structures and stay segregated when they transfer on 31 October. Threadneedle will then decide how the final fund offering will look, including merging away products where there are similarities.

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

A Threadneedle spokesperson said: "The process of transferring the management of LV= assets to Threadneedle is underway and there will be a number of people who will have roles at Threadneedle to support the business in future.

"However, until the process is complete we are unable to comment on any individuals. We look forward to welcoming a number of former LVAM staff to Threadneedle in due course."

Speaking to Investment Week recently, Threadneedle's head of UK wholesale distribution Gary Collins explained how the partnership with LVAM will shape the future of the group.

As well as an unfettered multi-manager range, LVAM has bond offerings focusing on short-dated and inflation-linked debt which could fill gaps in Threadneedle's range. 

"The LV= deal will bring over a range of risk-rated multi-manager portfolios using the Distribution Technology system to profile clients and we will likely feed in our own asset allocation views alongside that," Collins said.