Wheelock Natwest is to shut down its investment banking arm today owing to the duplication caused by Natwest Markets' acquisition of fund manager Gartmore earlier this year.
Wheelock Natwest, a joint venture between Hong Kong property investment company Wheelock & Co and Britain's Natwest Markets, will concentrate on its investment bank and share trading operations.
Natwest Markets spokesman Steve Colton said Wheelock had been seeking a new partner for the fund management business over the past few weeks but had been unable to reach any agreement. He said a decision had been taken to close fund management arm, Wheelock Natwest Investment Management.
Mr Colton said Gartmore, which cost Natwest Markets GBP472 million (about HK$5.87 billion) in February, had substantial fund management operations in its own right. He refused to comment on speculation that the marriage between Wheelock and Natwest could be nearing an end but said the shareholders of the joint venture were 'fully committed'.
'It is not our position to comment on rumours,' he said.
He said an attempt was being made to redeploy the fund management arm's 12 staff.
