Old Mutual Asset Management said it will cut the number of its mutual fund offerings in half as it moves to focus on single-manager, single-strategy funds that play to the strengths of the group's institutional investment boutiques.
Along with the culling of mutual funds from 42 to roughly 20, the retail arm Old Mutual Capital Inc. also will eliminate about 45 of its 90 administrative and distribution positions in the next eight months, Thomas. M. Turpin, president and CEO of OMAM, said in an interview.
The move reflects a decision to shift from a traditional retail wholesaling model to one more institutionally focused on professional gatekeepers, calling for more investment-oriented consulting capabilities from Old Mutual Capital's sales staff, he said.
While mutual funds in capacity-constrained market segments such as small-cap equity will continue to have multiple managers, others will become single-manager funds, Mr. Turpin said.
According to an SEC filing, Old Mutual will terminate Turner Investment Partners as a subadviser for the Old Mutual Large Cap Growth Fund effective Aug. 22, leaving Old Mutual affiliate Ashfield Capital Partners as the $167 million fund's lone manager.
The change in retail strategy follows a review that Old Mutual began last year, Mr. Turpin said. As of June 30, Old Mutual's retail funds had roughly $4 billion in combined client assets.