The decision to offload the asset management business comes amid Old Mutual’s managed separation, which involves spinning off its wealth arm, and is expected to be completed by the end of 2018.
The company is splitting Old Mutual Wealth, Old Mutual Emerging Markets, Nedbank and OM Asset Management, into four entities.
The total amount to be paid for Single Strategy includes £570mln on or before completion of the deal and a deferred consideration of £30mln between 2019 and 2021 when surplus cash associated with the group’s separation is released.
Single Strategy’s chief executive Richard Buxton will remain at the helm of the company after assets are transferred, which is expected to be completed on 1 January 2018.
"The Single Strategy business is less closely aligned to our goal of becoming the UK’s leading wealth manager," said Old Mutual Wealth chief executive Paul Feeney.
“I believe this development is a good outcome for our shareholders and provides the Single Strategy team with a great opportunity to build on the success they have achieved since 2012."
At 30 September 2017 Single Strategy held funds under management (FUM) of £25.7bn. Net client cash flow for the nine months to the end of September was £3.5bn.
Old Mutual Wealth’s FUM stood at £106.6bn while net client cash flows was £4.1bn across the same period.