Chief quits Scottish Widows asset arm

The asset management arm of Scottish Widows faces further setbacks after it emerged yesterday that its dynamic chief executive and chief investment officer, Orie Dudley, is leaving the company. Financial advisers said the company could see a loss of business with the departure of Mr Dudley, who is to head the global investment business of the Chicago-based Northern Trust.

The asset management arm of Scottish Widows faces further setbacks after it emerged yesterday that its dynamic chief executive and chief investment officer, Orie Dudley, is leaving the company. Financial advisers said the company could see a loss of business with the departure of Mr Dudley, who is to head the global investment business of the Chicago-based Northern Trust.

Scottish Widows Investment Partnership (SWIP), the asset management division of the mutual life company, has already suffered a £1.8bn loss of business since nearly 10 per cent of institutional investors deserted it. This followed its merger with the investment house Hill Samuel, after Lloyds TSB's takeover of Scottish Widows last year. Jason Hollands, deputy managing director of the broker Best Investment, said: "The team has been haemorrhaging managers since the merger and the news today reflects the fact that it will continue. I can't see any reason to spend my clients money on the fund at the moment."

Mr Dudley sparked controversy last month when he said Lloyds was not committed to the new asset management arm. He received a public reprimand from Scottish Widows' chief executive Mike Ross. Mr Ross stressed yesterday that the spat "completely unconnected" with yesterday's news.