HBOS fund management shake-up

BANKING group HBOS has unveiled a shake-up of its asset management business, including a £40m cash injection.

HBOS is rebranding Clerical Medical Investment Management as Insight Investment and will invest the cash over a three-year period.

The Edinburgh-based group said it wanted to be a key player in asset management and is targeting both retail and institutional investors.

Insight chief executive Douglas Ferrans added: 'By building on a strong track record and having the financial support of HBOS, we are in an excellent position to be a major force in the market place.'

For retail investors, HBOS wants Insight to be the first choice for IFAs and to be consistently in the top 10 for sales in the UK intermediary market. It will also increase the number of its funds from 14 to more than 20.

In the institutional market, Insight plans to be a top five provider of UK, European and pan-European bonds and equities by 2007 and a top three UK property investment manager.

London-based Insight has already recruited 100 people, both fund managers and marketing specialists, as part of the overhaul and aims to hire another 50 by the end of the year.

Clerical Medical was originally part of Halifax, which merged with Bank of Scotland to form HBOS last year.

But despite the name change, HBOS stressed Clerical Medical branded products would not be affected. 'This announcement has no impact on Clerical Medical's strategy and brand,' it said. 'Clerical Medical is a major player in the UK IFA, offshore and European markets.'

Clerical Medical, founded in 1824, was bought by Halifax when it demutualised eight years ago.