Aviva Investors has sold its US equity investment management subsidiary River Road Asset Management in an effort to streamline its US business.
River Road, which was acquired in 2009, will be sold to Affiliated Managers Group. The sale is expected to complete in the third quarter of the year.
Last summer, IFAonline sister title Investment Week revealed Aviva had soft-closed its US Equity Income fund and opened a second version of the fund to meet growing demand for the strategy. Both funds are co-managed by Henry Sanders and Thomas Forsha of River Road.
The strategy has underperformed the IMA North America sector over one year, returning 4.4% versus the average return of 10.9%, according to FE.
The group will continue to manage Aviva Investors' US Equity Income funds; Aviva still have a US business based in Chicago.
Jason Windsor, group chief strategy and development officer, said: "Aviva Investors is focused on becoming a fully-integrated asset manager offering products that deliver client outcomes with low volatility. A boutique US equity manager does not fit with this strategy."
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