US asset manager Old Mutual Asset Management is to acquire a majority stake in a newly-formed investment advisor, Ashfield Capital Partners,...

US asset manager Old Mutual Asset Management is to acquire a majority stake in a newly-formed investment advisor, Ashfield Capital Partners, via an agreement with San Francisco-based Ashfield & Co, a $3 billion boutique firm specialising in managing growth stocks for institutional and private investors. Under the terms of the agreement, Ashfield & Co will contribute all of its assets to Ashfield Capital Partners. Old Mutual Asset Management will acquire a 55 per cent interest in the new firm, and expects ultimately to increase its ownership to 85 per cent. As an affiliate of Old Mutual Asset Management, Ashfield Capital Partners will enjoy investment and operational autonomy, according to Scott Powers, chief executive officer of Old Mutual US, the US wealth management business of which Old Mutual Asset Management is a part. "This model places a premium on competitive investment performance and has been a major driver of Old Mutual Asset Management's substantial, organic growth in recent years," he said. Stephen Lauck is president and chief executive officer of Ashfield & Co. Its portfolio team had more than $3 billion under management at 30 June 2006. "The ownership structure of Ashfield Capital Partners will directly align employee and client interests," said Mr Lauck. He added that Ashfield & Co will now have access to a wide range of operational and technological support from Old Mutual Asset Management, across product development, marketing, human resources, financial management, legal, compliance and risk management.