Sky News has learnt that David Cumming is in advanced discussions about a senior role running the equities division of Aviva Investors, which manages assets worth more than £350bn.
Sources close to the insurance company, which boasts a market value of close to £20.5bn, said it was possible that an announcement would be made confirming Mr Cumming’s appointment as soon as next week.
If he does join Aviva Investors, it would be a strong signal of intent from Euan Munro, the division’s chief executive and a former Standard Life colleague of Mr Cumming.
Although the overall investment business has been performing well under Mr Munro’s stewardship, its equities division has been comparatively under-powered given the reach of Aviva’s brand – currently best-known for its sponsorship of the rugby union Premiership.
Adding Mr Cummings in a top role – expected to be head of global equities – would add star quality to one of the City’s leading institutional investors.
This week, Aviva Investors said it would back Donald Brydon, the chairman of the London Stock Exchange Group, in a battle led by an activist fund to oust him.
During his 18-year career at Standard Life, Mr Cumming was an outspoken commentator on events in Britain’s biggest boardrooms, often intervening to protest against corporate takeovers, bonuses or appointments that he believed were unattractive.
He left Standard Life Investments days after its £11bn merger with Aberdeen Asset Management was revealed by Sky News.
Image: Aviva is in its eight season sponsoring Premiership Rugby
Mr Cumming’s exit was viewed in the City as a blow to the combined group, Standard Life Aberdeen, and he is understood to have been courted by a large number of rival asset managers in the months since his departure.
His arrival at Aviva Investors is expected to see Chris Murphy, the current global head of equities, revert to a UK-focused role within the business.
Mr Cumming may look to recruit some former colleagues from what is now called Aberdeen Standard Investments, although details of any such efforts were unclear on Saturday.
The recruitment of Mr Cumming will reinforce the importance of attracting star managers at a time when active funds are under pressure from passive rivals.
Richard Buxton, another top City name, is in talks about a £550m management buyout of Old Mutual Global Investors’ single-strategy business, with backing from TA Associates, a private equity firm.
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At its half-year results in August, the company said that revenue at Aviva Investors had increased by 13% to £273m, driven by the growth of its multi-strategy assets under management and increased income from infrastructure investments.
An Aviva Investors spokesman declined to comment this weekend.
Source: Sky