expects to boost its profit by $8-10 million per year thanks to the Touchstone
deal. The British and South African parent of the U.S. multi-boutique asset manager revealed
that tidbit today in its "interim management statement" (i.e. third quarter earnings report).
, Business Live
, Dow Jones
all reported on Old Mutual's results.
A month ago Touchstone revealed a deal to buy 17 Old Mutual funds with about $2 billion in total assets [see MFWire.com, 10/4/2011
]. Old Mutual expects to complete the sale in the second quarter of next year.
Overall, Old Mutual's U.S. asset management business suffered a 12.6 percent dip in assets last quarter, reaching $226.8 billion on September 30. That included $11.1 billion in net outflows and $21.7 billion in performance pain, even as the S&P 500 lost 14.33 percent for the quarter.
Meanwhile, it appears that Old Mutual is no longer in a hurry to spin off the entire U.S. asset management arm. Last month Old Mutual Asset Management chief Peter Bain
told a trade pub that the firm is not rushing the IPO [see MFWire.com, 10/17/2011
Neil Anderson, Managing Editor
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