22 Mar 2000
Prudential agrees transfer of UK Segregated Balanced and Specialist Equity Business to Deutsche Asset Management
Prudential plc announces that it has agreed to transfer, subject to client approval, part of its UK institutional fund management activities to Deutsche Asset Management (DeAM). The relevant parts of these activities comprises approximately £12bn of UK segregated balanced and specialist equity mandates from a range of institutional clients, out of a total Prudential group funds under management of approximately £170bn. Prudential’s institutional specialist bond and pooled businesses are not included in this agreement.
This arrangement follows a strategic decision by Prudential to focus its asset management business in unit trusts, pooled life and pension funds and specialist bond fund management.
This agreement has been reached after a thorough selection process. The aim was to find the best possible solution for clients. DeAM has an excellent track record in the institutional field, a large fund management team and significant administrative resource. For these reasons Prudential believes DeAM offers the best alternative investment proposition combined with the infrastructure to effect a smooth transition, therefore minimising the disruption for clients.
The consideration for the transfer, which will be based on a combination of the value of funds taken on by DeAM and future revenues, will not be material in relation to the net assets of Prudential.
Michael McLintock, chief executive of Prudential M&G Asset Management, the combined asset management businesses of Prudential and M&G, commented,
"Once we had taken the decision to focus on areas where we have a competitive advantage we concentrated on seeking the best possible partner for all those clients affected. We believe Deutsche Asset Management have the resource and commitment to make a great success of this role."
James Goulding, Chief Executive of Deutsche Asset Management's UK Division, said,
"We are committed to growing our UK institutional business and believe we have the investment process, resources and track record to offer Prudential’s and M&G’s institutional clients a very attractive new partner. We look forward to working with these clients."
Analysts - Carys Walshe
Tel: 0171 548 3823
Media - Jeremy Reynolds
Tel: 0171 548 3721
Media - Vicky Hill
Tel: 0171 548 3462
- Prudential M&G Asset Management comprises the combined asset management businesses of PPM and M&G.
- Following the transfer of the UK segregated balanced and specialist equity mandates from a range of institutional clients worth £12bn, Prudential will continue to manage assets worth more than £155bn in pooled life and pension funds, unit trusts and specialist bond mandates.
- The Prudential’s and Scottish Amicable’s Life Funds represent £74bn of those funds under management.
- Deutsche Asset Management (DeAM) has a strong global network of investment resources with offices in London, Frankfurt, Milan, New York, Philadelphia, Tokyo, Singapore and Sydney employing more than 300 investment specialists worldwide, over 100 of whom are based in the UK.
- DeAM is regulated by IMRO in the conduct of its investment business.