Fund managers consider flotation on London market

The London Stock Exchange could be poised for at least two major fund management flotations as insurers consider partial sales of their asset management arms.

Jupiter's successful listing is thought to have alerted both Standard Life and Prudential of the possible gains to be made from either floating or partially selling their fund management arms, Standard Life Investments (SLI) and M&G.

Jupiter, run by Edward Bonham Carter, has seen its shares soar to close on Friday at 253.5p, up 2.9p, after joining the market at 165p. It has proved that there is an appetite among investors for fund management groups after the troubled listing of Gartmore last year.

It is likely that both companies would retain small teams to handle their life assurance assets, or substantial stakes in their subsidiaries, if they opted to make such a move.

Standard Life executives are understood to have been touring the City in a bid to convince analysts that SLI's true worth is not reflected in the valuation of the group.

Standard closed at 229.9p, down 1.2p, on Friday but its "embedded" value, which tots up the value to the company of all the plans and policies held by customers, stands at more than 300p.

The group is already understood to have worked on plans to spin SLI off during the middle part of the decade, when regulators demanded it raise more capital resulting in the group's flotation.

Reheating the idea now would appease Keith Skeoch, the ambitious head of SLI who was passed over for the job of chief executive of Standard Life Group in favour of former finance director David Nish.

Rumours of a similar move at M&G have been gathering strength since the disastrous attempt by its partner, Prudential, to take over Asian insurer AIA.

Hostility towards chief executive Tidjane Thiam and chairman Harvey McGrath, seen as the deal's architects, led a group of small investors to chant the name of M&G boss Michael McLintock at a stormy group AGM. He is seen as a possible successor to Mr Thiam, who only narrowly survived calls for his head after the AIA debacle, which cost the company more than £300m.

A spin-off would generate capital for the group and could appease critics who have called for a break-up of the company. M&G has been used as something of the cash cow for the group.

Prudential shares closed on Friday at 636.5p, down 8.6p, having recently stated a recovery following the deal.

Start your day with The Independent, sign up for daily news emails
News
ebookA unique anthology of reporting and analysis of a crucial period of history
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Guru Careers: Software Developer / C# Developer

£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...

Neil Pavier: Management Accountant

£45,000 - £55,000: Neil Pavier: Are you looking for your next opportunity for ...

Sheridan Maine: Commercial Accountant

£45,000 - £55,000: Sheridan Maine: Are you a newly qualified ACA/ACCA/ACMA qua...

Laura Norton: Project Accountant

£50,000 - £60,000: Laura Norton: Are you looking for an opportunity within a w...

Day In a Page

Sun, sex and an anthropological study: One British academic's summer of hell in Magaluf

Sun, sex and an anthropological study

One academic’s summer of hell in Magaluf
From Shakespeare to Rising Damp... to Vicious

Frances de la Tour's 50-year triumph

'Rising Damp' brought De la Tour such recognition that she could be forgiven if she'd never been able to move on. But at 70, she continues to flourish - and to beguile
'That Whitsun, I was late getting away...'

Ian McMillan on the Whitsun Weddings

This weekend is Whitsun, and while the festival may no longer resonate, Larkin's best-loved poem, lives on - along with the train journey at the heart of it
Kathryn Williams explores the works and influences of Sylvia Plath in a new light

Songs from the bell jar

Kathryn Williams explores the works and influences of Sylvia Plath
How one man's day in high heels showed him that Cannes must change its 'no flats' policy

One man's day in high heels

...showed him that Cannes must change its 'flats' policy
Is a quiet crusade to reform executive pay bearing fruit?

Is a quiet crusade to reform executive pay bearing fruit?

Dominic Rossi of Fidelity says his pressure on business to control rewards is working. But why aren’t other fund managers helping?
The King David Hotel gives precious work to Palestinians - unless peace talks are on

King David Hotel: Palestinians not included

The King David is special to Jerusalem. Nick Kochan checked in and discovered it has some special arrangements, too
More people moving from Australia to New Zealand than in the other direction for first time in 24 years

End of the Aussie brain drain

More people moving from Australia to New Zealand than in the other direction for first time in 24 years
Meditation is touted as a cure for mental instability but can it actually be bad for you?

Can meditation be bad for you?

Researching a mass murder, Dr Miguel Farias discovered that, far from bringing inner peace, meditation can leave devotees in pieces
Eurovision 2015: Australians will be cheering on their first-ever entrant this Saturday

Australia's first-ever Eurovision entrant

Australia, a nation of kitsch-worshippers, has always loved the Eurovision Song Contest. Maggie Alderson says it'll fit in fine
Letterman's final Late Show: Laughter, but no tears, as David takes his bow after 33 years

Laughter, but no tears, as Letterman takes his bow after 33 years

Veteran talkshow host steps down to plaudits from four presidents
Ivor Novello Awards 2015: Hozier wins with anti-Catholic song 'Take Me To Church' as John Whittingdale leads praise for Black Sabbath

Hozier's 'blasphemous' song takes Novello award

Singer joins Ed Sheeran and Clean Bandit in celebration of the best in British and Irish music
Tequila gold rush: The spirit has gone from a cheap shot to a multi-billion pound product

Join the tequila gold rush

The spirit has gone from a cheap shot to a multi-billion pound product
12 best statement wallpapers

12 best statement wallpapers

Make an impact and transform a room with a conversation-starting pattern
Paul Scholes column: Does David De Gea really want to leave Manchester United to fight it out for the No 1 spot at Real Madrid?

Paul Scholes column

Does David De Gea really want to leave Manchester United to fight it out for the No 1 spot at Real Madrid?