US - Morgan Stanley will sell its retail business, including Van Kampen Investments, to Invesco for $1.5bn as the firm increases its focus on the institutional market.
Invesco will take on some US$119bn in assets once the deal closes in mid-2010, including Morgan Stanley's equity management business in Japan. Morgan Stanley Investment Management (MSIM) will keep the firm's Japanese fixed income business.
As part of the deal, Morgan Stanley will retain a 9.4% share in Invesco.
The restructured MSIM will have $267bn in assets under management and consist of a long-only institutional business, a liquidity unit, and a merchant banking business. MSIM will also tout real estate, private equity and infrastructure units.
Officials at MSIM are putting their energy into a business that took a beating during recent quarters.
After weak second quarter returns, Morgan Stanley chief executive John Mack said officials were "taking steps to deliver better results".
The asset management business posted a pre-tax loss during the second quarter of $239m, down from a loss of $232m the previous year. Assets under management or supervision had also shrunk to $361bn, down nearly 38% from a year earlier. The firm will announce its third quarter results tomorrow.
MSIM co-head Stu Bohart said: "We are refocusing our efforts towards greater profitability from a solid foundation, building on the strength and momentum already achieved in key businesses. We continue to see strong long-term performance in many of our actively managed strategies across the 1-year, 3-year, 5-year and 10-year time periods."
Royal London saw its new group pension business decline over the first half of 2018 as the rollout of auto-enrolment (AE) drew to a close, according to its interim results.
Now Pensions has made "huge progress" in resolving legacy administration issues - switching systems and completing unit adjustment for a "large proportion" of members, it says.
Trustees of the Airways Pension Scheme (APS) will not make a firm decision on whether to appeal the Court of Appeal's judgment on discretionary increase payments until September.
Accountant Hashmukh Shah has pleaded guilty to deliberately providing false information to The Pensions Regulator (TPR) when stating a pension scheme had been set up for staff of a London-based restaurant.