Rothschild Asset Management has been put up for sale following the Rothschild Group's decision to fo...
Rothschild Asset Management has been put up for sale following the Rothschild Group's decision to focus on its core international private banking and wealth management divisions.
The decision, taken last week, means the Five Arrows-branded retail and institutional businesses are expected to be sold off, including the group's £1bn multi-manager wing, spearheaded by Bambos Hambi.
Paul Manduca, chief executive of Rothschild Asset Management, confirmed the Rothschild Group is looking to sell off the asset management business quickly and hopes to have a buyer secured within two to three months. The price placed on the business remains undisclosed.
Fund managers at the group were given the added security of an enhanced contract just before the announcement was made public, which locks them in until the latter half of next year, David Orr, head of retail marketing at the group, said.
Manduca noted the sale was largely prompted by the thinning of margins, particularly in the middle tier of asset managers. Rothschild is the 35th largest fund manager in the UK in terms of assets under management.
Manduca said macroeconomic pressures on the group were symptomatic of a wider trend in the industry, with competitive pressure rising as margins spiral downwards, a problem exacerbated by the two and a half year bear market.
He said: 'Five Arrows has been an extremely good business and the relaunch has gone well. We have a good team and, without that, we would not be attractive enough to sell.'
The Five Arrows Portfolio Service, the group's £1bn multi-manager arm, will be the jewel in the crown, differentiating it from others up for sale.
Besides these assets, Rothschild Asset Management has £1bn in other retail money. The remaining £11bn is institutional money, of which the split is roughly 70:30 in favour of fixed interest, according to Manduca.
Our weekly heads-up for advisers
'Nothing can prevent scammers developing workarounds'
Stalwart Scottish Mortgage takes third place
Consistency and compliance vs. slower reaction time
Search for replacement to begin imminently