£1.3bn fund office moves to Dublin

Aberdeen Asset Management, which manages Scottish Provident's £1.3 billion of Irish assets, is to move the management of those assets from Edinburgh to a new investment management operation based in Dublin.

The new operation is expected to be up and running by the autumn, and will be separate from Aberdeen's existing operation in the IFSC, where £400 million is managed in the Aberdeen umbrella fund.

Until last year, Scottish Provident's Irish assets were managed by its own investment team in Edinburgh, but was transferred to Aberdeen as part of Aberdeen's purchase of Scottish Provident's £13 billion sterling international asset management business. In return, Scottish Provident received a 41 per cent stake in Aberdeen.

Mr John Lawrie, who managed the Irish assets for 25 years, moved to Aberdeen to continue managing those assets. Now the management of those assets will be transferred to the new Dublin operation, with the new Irish company being chaired by Mr Lawrie.

Two fund managers Ms Carmel Phelan, formerly of New Ireland and Mr Ivan Murphy of Aberdeen Asset Managers have been appointed to the new Dublin fund management team and further appointments are expected ahead of the autumn launch of the Irish operation. Mr Lawrie declined to speculate on the total number that will be employed in the new Dublin operation but said "it would reflect the size of the assets managed".

Mr Lawrie said that the Scottish Provident business would initially represent the vast bulk of Aberdeen's asset management operations in Dublin, but said: "Aberdeen will look for other asset management business." He added that the Dublin operation would be able to launch its own financial products, but not in competition with Scottish Provident.

The indications are that Aberdeen intends to use the new Dublin base to build additional business. Chief executive, Mr Martin Gilbert, said: "This is an exciting development which underlines Aberdeen's commitment to establishing fund management offices where they can make a direct and positive contribution to attract assets under management."

Mr Lawrie said Aberdeen has been keen for some time to set up an operation in Dublin, but only had the required critical mass after it acquired the Scottish Provident fund management business. The Dublin subsidiary will add to existing Aberdeen operations in Aberdeen, Edinburgh, Chicago, Fort Lauderdale, Inverness, London and Singapore.

Scottish Provident Ireland chief executive, Mr Peter Towers, said it was delighted with the move.