Specialist insurer Hiscox and financial group Collins Stewart have spun off their fund management units in an effort to gather more assets, as retail investors continue to invest hundreds of millions of pounds in UK retail funds.

Specialist insurer Hiscox has agreed to sell its fund management arm, Hiscox Investment Management, to management. Hiscox will have a 40% stake, with management holding the rest. The buyout is due to complete at the end of this year and the firm will launch with £125m of assets under management.