South African financial services group Old Mutual said on Wednesday that its US asset management group was selling NWQ Investment Management company to John Nuveen for $140 million.
Old Mutual also said in a statement that it had entered a strategic alliance with John Nuveen through which Nuveen investments would distribute selected capabilities of Old Mutual’s asset management affiliates.
”Nuveen and Old Mutual have complementary strengths in U.S. asset management which we believe provide great prospects for our firms to work effectively together,” said Scott Powers, chief executive of Old Mutual’s U.S. asset management arm.
NWQ, a value-oriented equity specialist managing over $7-billion, became a part of Old Mutual in 2000.
The transaction for $140-million includes up to $20-million over five years that can be offset by fees paid to Old Mutual affiliates under the strategic alliance.
Old Mutual said recently that its US operations were showing signs of struggling but added that it was confident that it could take advantage of any upturn in its key British, South African and United States markets.
It has been shedding units that it says duplicate or overlap with other parts of its business.
Old Mutual was trading 1,48% lower at R16,60 in Johannesburg in line with a weaker sector. – Reuters