Aviva Investors sells River Road

Aviva Investors, the asset management business of insurer Aviva, has sold US equity manager River Road Asset Management to asset manager Affiliated Managers Group.

River Road, based in Kentucky, was acquired in 2009. The firm manages more than $11 billion in assets and will remain the manager of Aviva Investors’ US Equity Income Funds.

The sale of River Road is subject to obtaining customary consents and approvals and completion is expected in the third quarter of 2014.

Aviva Investors has assets under management of £241 billion and will remain committed to the US market, said the company.

The sale represents a modest premium to group net asset value and will increase both the insurance group directive solvency surplus and economic capital surplus by an estimated £100 million.

Jason Windsor, group chief strategy and development officer, said: “The transaction is in line with Aviva Investors’ strategy of simplifying its business and moving towards an integrated operating model and organisational structure. A simpler, more focused business will help Aviva Investors become a stronger third party manager and increase its contribution to the group.

“Aviva Investors is focused on becoming a fully-integrated asset manager offering products that deliver client outcomes with low volatility. A boutique US equity manager does not fit with this strategy. We look forward to a continued relationship with River Road.”