Aviva Investors, the asset management business of Aviva plc, is to sell US equity manager River Road Asset Management to Affiliated Managers Group (AMG).
Aviva Investors says it remains committed to the US market and has a strong business based in Chicago.
It says it is seeing strong growth in cross border sales in product classes including global high yield and securitized products, global convertibles and real estate multi-manager and hedge fund of funds.
Jason Windsor, group chief strategy and development officer, says: “The transaction is in line with Aviva Investors’ strategy of simplifying its business and moving towards an integrated operating model and organisational structure. A simpler, more focused business will help Aviva Investors become a stronger third party manager and increase its contribution to the group.
“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. We look forward to a continued relationship with River Road.”
The sale represents a modest premium to group NAV and will increase both the IGD solvency surplus and economic capital surplus by GBP0.1bn.
River Road, based in Louisville, Kentucky was acquired in 2009. River Road will remain the manager of Aviva Investors’ US equity income funds.
The sale of River Road is subject to obtaining customary consents and approvals and completion is expected in the third quarter of 2014.