Prescient to acquire Dublin-based AIB Investment Managers

Prescient announced today that it had agreed with Allied Irish Bank (AIB) Group to acquire AIB Investment Managers Limited (AIBIM), its asset management subsidiary.

AIBIM will be renamed Prescient Investment Managers (Ireland) Limited and will remain as the Dublin based investment manager in the Prescient Group. It will continue to be managed by the existing team, delivering its successful and proven investment strategies.

AIBIM currently manages assets of €8.5 billion (as of October 2011) for a wide variety of clients, including pension, corporate, charity and private clients both in Ireland and overseas.

The company was established in 1966, and has an unbroken profit record. With offices in Dublin and New York, it employs over 100 people. AIBIM has extensive experience managing global equities, bonds and property with a strong performance record in all three areas.

Prescient, headquartered in Cape Town, was established in 1998 and is in the process of listing on the Johannesburg Stock Exchange (JSE). It operates a range of financial services activities including South Africa's leading quantitative investment management house with R95 billion (€9 billion) assets under management, investment administration as well as wealth management and securities businesses.

As well as a successful and multi-award winning business domestically, the group has offices elsewhere in Africa and in China. Prescient has managed Irish regulated funds in Dublin since 2007 and is an approved promoter and investment manager in Ireland. More recently Prescient established Stadia Fund Management Limited a UCITS Management Company authorised to administer UCITS and Non UCITS schemes.

Rationale for the transaction

For Prescient this is a pivotal step towards building a global business, using Dublin, where it already had a presence, as its European base.

Benefits

The nature of the transaction will ensure continuity in the investment management and client relationship teams in Ireland. We will build a framework to retain, incentivise and attract quality investment management talent. The investment philosophy and proven investment process remains unchanged.

“This is a very significant step for us and our clients” said Frank O’Riordan, Managing Director AIBIM. “We are delighted to partner with an asset manager of similar size with a shared ambition to grow and drive the business internationally.”

Herman Steyn, Prescient Executive Chairman, commented “We are building a global business and view Dublin as a springboard into Europe and the US. We have been looking to expand our investment management capability and view this acquisition as a significant part in our development”

The acquisition, which is subject to regulatory approval, is expected to be completed during the first quarter of 2012.