UK - Invesco Perpetual is set to sell its bundled defined contribution business and focus on its core fund management business.
The firm, which is part of fund management giant Amvescap, said it was reviewing a “number of options” for its bundled DC unit, Invesco Pensions and holding discussions with a number of external parties regarding a possible sale of the whole business.
Invesco says the review is part of its plans to focus on its core investment management business. Invesco Pensions executive board member Terry O’Malley - who helped set up the unit when he joined from Fidelity Investments in 2000 - will leave the firm by the end of the year.
Invesco chief executive Bob Yerbury said: “We will maintain our strategy of delivering strong and reliable investment products and will continue to offer investors access to our investment capability across all forms of pension fund provision. In addition we will ensure we place our clients’ needs at the forefront of our review process.”
However, consultants are baffled by Invescoís move. The firm’s DC platform is highly rated and has won a large number of clients since it was launched at the start of the decade. Also, Invesco has spent a ‘significant’ amount of money bringing its administration back in-house from DC Solutions.
One leading consultant - who declined to be named - said: “Obviously, someone has looked at its running costs and decided not to invest any further. The DC market has slowed and perhaps Amvescap has decided to cut its losses.”
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