British investment services provider Old Mutual opened a mutual fund subsidiary this week in Denvers beleaguered financial district, Rocky Mountain News reports.
The new mutual fund shop formally known as Old Mutual Capital, Inc. recently launched four funds that vary in degrees of risk and outsource portfolio management responsibilities to nearly a dozen other U.S.-based Old Mutual subsidiaries.
The funds, which opened this week to new investors and have been dubbed the "asset allocation" funds, have a combined total of $25 million in assets under management.
The news comes as breath of fresh air to Denver city officials who endured the roller coaster ride of Janus Capital Managements tribulations and bid goodbye to sizeable tax revenues from Invesco, which was merged into its sister company, AIM Investment Management. The citys unemployment woes worsened this week after Invescos British corporate parent Amvescap PLC eliminated additional local jobs.
A senior official at Old Mutual Capital hinted at expanding the payroll from 50 employees but declined to provide more details. Denver is awash with talented fund industry employees who were downsized after Janus and Invesco were cited for misconduct by securities regulators.