Sanlam UK is to take over the management of three Luxembourg-based discretionary strategies previously run by Close Brothers on behalf of VAM Global Management.
The discretionary fund management (DFM) partnership will see VAM's diversified multi-asset fund range migrate to Sanlam UK's direct discretionary-funds four-strong team and change of approach from a fund of funds to a directly invested model.
The VAM Cautious, VAM Balanced, and VAM Growth funds, which were run by Close Brothers for the past four years, manage combined assets of $175 million (£135 million), and are 'designed to suit a specific risk profile and investment preference', according to the firm.
Sanlam UK’s chief investment officer, Philip Smeaton, will take over investment management responsibility for the three strategies from Matt Stanesby, the investment director of Close Brothers.
The funds will be invested in direct securities so there will be no third-party funds held within the portfolios.
Sanlam said charges will be 'materially reduced as a result of the elimination of fees paid to external fund managers', but it is unclear currently how much those charges will be.
Sanlam UK's private office chief executive Penny Lovell said: 'Investors and regulators alike are increasingly focused on cost and transparency.
'We’ve seen a growing international DFM demand from high net worth clients and the partnership with VAM coupled with our strong investment pedigree and expertise will help to ensure that demand is fulfilled.
'VAM is a leading fund management company with strong investment credentials and an established presence in the international community. Like us, VAM place great emphasis on putting clients first and we look forward to developing a successful partnership over the coming years.'
Brendan K. Adams, VAM's managing director said: 'Financial intermediaries based internationally are increasingly noticing they need to form partnerships with established fund managers to further help them deliver investment excellence.
'Investors in our discretionary funds will benefit from Sanlam’s significant expertise, industry-leading performance and reduced overall fees. This partnership with Sanlam UK is an ideal fit for our international investors, their investment goals, and their regulatory demands.'