UPDATE: Ignis confirms Argonaut split

Argonaut Capital Partners has confirmed it will split off from Ignis Asset Management, with Ignis retaining a 40% stake in the boutique.

Founding partners Barry Norris and Olly Russ will take management control, owning 60% under the new structure with Ignis reducing its equity stake from 50% to 40%.

Argonaut will run as an independent business, under a single brand and with dedicated management. It will expand its investment team and management resource and develop its own UK distribution capability. Ignis will continue to distribute Argonaut's funds in Continental Europe.

Norris and Russ will continue to head up the Argonaut funds, consisting of European Alpha, European Absolute Return, European Enhanced Income and European Income.

Within the range, the £326m European Alpha fund is one of the top performing offerings, returning 20.6% to investors over three years compared to the IMA Europe ex UK average of 1.7% (to 5 August, according to Morningstar).

Argonaut intends to appoint a chief operating officer who will oversee the transition, which will take place over the next 12 months.

Ignis' interest in Argonaut will form part of Ignis Partners, an Ignis Business Unit established in 2010 to hold its boutique investments. Ignis Partners also holds investments in Bryan Collings' EM boutique Hexam, which split off from the group in July 2010, and Castle Hill Asset Management, the specialist credit investment manager, which was established along equivalent lines when the business was launched in January 2010.

The group said it remains dedicated to supporting Cartesian, in which it holds a 50% equity stake.

Norris said: "We believe this evolution of our business model from a joint venture to an independent entity is appropriate to Argonaut's current stage of development. We look forward to making further announcements in due course."

Chris Samuel, CEO of Ignis, added: "We are pleased to have agreed these exciting plans for the next stage of Argonaut's growth. It is very much a part of our strategy to incubate our current joint ventures and then to transition them to an independent model when they reach an appropriate stage so as to best support their development and the services we provide to investors."

Samuel has previously said the group would not establish any new joint venture boutiques but wanted to focus on its core offering. The group's internal range of funds is in the process of being revamped under CIO Mark Lovett.

The Emerging Markets Select Value fund moved to invest in futures and index trackers while the American Growth fund was converted into a best ideas mandate. Mark Holden also joined to take over the management of the UK Focus fund.

Ignis launched Argonaut, its first joint venture boutique, with former Neptune managers Norris and Russ in 2005, when it was known as Britannic Asset Management. The JVs were an initiative spearheaded by former sales and marketing director Jonathan Polin, who left the group in June and is joining Ashcourt Rowan as group CEO in September.

In 2006, Hexam launched with former Barings managers including Bryan Collings.

In 2010, Collings and his team moved independent from Ignis after raising £1bn in AUM. Ignis, which rebranded from Resolution in 2008, still retains a 35% financial interest in the company.