Irish Life’s Canadian parent, Great-West Lifeco, is merging its European asset management units to set up a money manager with a significant base in the City of London as it looks to make inroads into the UK market.
The new business, Keyridge Asset Management, will combine the European divisions of Canada Life Asset Management, as well as Dublin-based Irish Life Investment Managers (ILIM) and Setanta Asset Management, according to a statement.
The enlarged entity, headquartered in Dublin, will oversee more than €153.4 billion in assets and continue to cater to institutional and wholesale clients offering products including multi-asset, fundamental equities and systematic quant funds.
Irish Life Investment Management Limited recently changed its name to Keyridge Asset Management, according to a filing with the Companies Registration Office in Dublin. It will remain regulated by the Central Bank of Ireland and operate as a branch in the UK. It will also continue to do business in the Republic under the ILIM and Setanta brands.
There is no impact on the 300 combined ILIM and Setanta employees in Dublin, according to sources. Patrick Burke, who oversaw significant growth in assets under management as managing director of ILIM over the past dozen years, will serve as CEO of the wider Keyridge group.
Great-West Lifeco is backed by Canada’s billionaire Desmarais family, which has been looking to shift into higher-growth areas of financial services while shedding some legacy assets.
Keyridge faces fierce competition in the UK, the world’s second-largest investment management hub after the US. Still, many traditional stockpickers including Aberdeen and Jupiter Fund Management have suffered consecutive years of outflows amid the rise of cheaper, passively managed funds and a relatively high fixed cost base.
“There’s been a lot of turnover in UK asset management,” said Mr Burke. “Not every business is in a growth mode – and we’re very much in a growth mode.”
– Additional reporting, Bloomberg
