In a bid to step up its presence in the intermediary channels, American Century is shuffling its staff, a move that will result in the loss of approximately 70 positions, said Chris Doyle, a spokesman for the company.
"We looked at the business and said, Where is the growth potential? Its really the intermediary area," he said. The firm has offered all of the employees affected by the shift their choice of either a new position or a severance package, he said. Sixty-four employees accepted severance packages. Another six, including two portfolio managers and four support staff, were laid off as a result of a merger of six fixed-income funds, Doyle said. Some of the positions offered to employees included smaller compensation packages, he said.
American Centurys direct business is still profitable but "its not in a growth mode," Doyle said. Most of the positions that were eliminated in the restructuring were related to the retail direct business, he said. The new positions include intermediary sales and marketing roles and institutional marketing and product development positions.
Nearly 70%, or $88 billion, of American Centurys new flows are generated from institutional and third party sales, Doyle said.
As of September, American Century had $66.5 billion in assets under management, a 33% drop over a year prior, according to Financial Research Corporation of Boston.