OLD Mutual Global Investors is to open an Edinburgh office after poaching a six-strong team displaced from Ignis Asset Management in the takeover by Standard Life Investments.

Old Mutual says Russ Oxley and five colleagues will form a fixed income-absolute return team "during 2015".

The announcement came 24 hours after Standard Life Investments said that the Ignis Absolute Return Government Bond Fund had been integrated into SLI and its process "embedded" within the group.

Old Mutual said the former Ignis team of Mr Oxley, Huw Davies, Joshua Heming, Adam Purzitsky, Paul Shanta and Jin Wong, would support the launch of a new suite of fixed income-absolute return products, and complement the group's nine-strong fixed income team.

"Old Mutual Global Investors will also open an office in Edinburgh to continue the existing dual location arrangement that this team has operated."

SLI has signalled that it will close the Ignis office in Glasgow and focus its operations on Edinburgh and London.

Julian Ide, the fund group's chief executive, said the hire of the six-strong team "clearly demonstrates that we are an attractive destination for top investment talent".

He said the business, launched only two years ago, was now building a strong UK presence to achieve a top five position in the market.

"Its strategy is also to expand into selected markets to support its global client base," he added.