Announced June 16, theapproximately £340 million ($565 million) cash deal provides that Threadneedle will continue to retain ties to Zurich through the continued management of certain Zurich assets for an initial term of up to eight years and the continued distribution of Threadneedle investment products through both the Zurich Advice Network and the Zurich Independent Financial Advisors Group. Further, Threadneedle will maintain a distinctive investment process and brand name, according to a news release.
Headquartered in London, Threadneedle was created in 1994 through the merger of the investment management functions of Allied Dunbar and Eagle Star. It became a part of the Zurich Group in 1998, following Zurich’s merger with the B.A.T Industries’ financial services business. As of March 31, 2003, Threadneedle had over £44 billion ($75 billion) in assets under management.