Financial services group Sanlam today announced two new international investment management transactions, one an acquisition in the UK and the other the formation of a new asset manager in Asia.
Hendrik Pfaff, managing director of Sanlam International Investment Partners (SIIP) says that these developments are in line with the strategic objective of expanding the group’s global asset management footprint through direct investment in specialist investment management businesses in specific regions. SIIP, the division of Sanlam set up specifically to progress this global strategy, currently manages international assets and funds to the value of US$4.4billion.
“We have identified and met with over 100 specialist asset management businesses over the past 12 months in centres such as London, Sydney and Singapore. We are very specific in terms of the qualities we look for from a business. An important criteria is the retention of a strong management ownership structure that allows its investment partners the required autonomy to continue to drive their businesses and investment performance delivery,” says Pfaff.
ANNOUNCEMENT 1: FOUR Capital Partners Ltd in the UK
The first announcement is an investment partnership with UK-based investment manager, FOUR Capital Partners Ltd (FOUR). In terms of the partnership, Sanlam will take an initial equity interest of 29.9% (subject to various regulatory approvals) in the firm for an undisclosed sum.
Pfaff says, “FOUR is a quality specialist investment management business that complies with all the key criteria that SIIP looks for in an investment partner. The senior management team is experienced and impressive, the investment process is proven and the performance track record outstanding. We look forward to assisting in developing FOUR into one of the leading specialist asset management businesses in Europe.”
FOUR is a London-based specialist investment management business authorised and regulated by the Financial Services Authority. It was established in 2006 as a UK equity specialist by Tom Carroll, Chris Rodgers, Ted Williams and Derrick Dunne. In 2009, Dino Fuschillo joined the firm to establish a European equity capability. The current FOUR executives will retain their existing equity stake at the outset, meaning that the company will remain majority employee owned.
Derrick Dunne, a founding partner of FOUR, says, “This is a very positive development for FOUR. We are delighted to be in partnership with such a well regarded global investment organisation and are confident this will enhance our capabilities for clients and overall business prospects. While FOUR will remain an autonomous and investment-led firm, focused on delivering excellent investment performance, the relationship with Sanlam will give comfort to our clients and prospects that there is a strong financial and operational partner behind FOUR.”
FOUR’s investment philosophy is grounded on an intrinsic value approach, undertaking in-depth fundamental research and analysis on stocks entailing a rigorous team based selection process. It focuses on concentrated portfolios with an objective to generate alpha over the long term and portfolios have performed strongly relative to Index since launch in 2007. FOUR has attracted a blue-chip client base and now manages in excess of US$500m. The firm is well regarded by multi-managers and consultants. FOUR has been short-listed as European Pensions Equities manager of the year and short-listed by the Pensions and Investment Providers awards as an Active UK Equity contender.
ANNOUNCEMENT 2: Eight Investment Partners in Australia
The second announcement is the establishment by SIIP of an Australian-based specialist Asia Pacific funds manager, Eight Investment Partners (8IP) (subject to regulatory approval).
“At SIIP, we believe in ownership-driven structures, quality investment processes with a focus on alpha generation, excellent governance and above all, exceptional people,” says Pfaff. “I am, therefore, delighted that Kerry Series, formerly Head of Asia Pacific Equities for AMP Capital Investors, has joined 8IP as CIO and shareholder. Series is one of the most experienced Asian equity investors in Sydney, with a history of generating alpha for clients over many years. Having been a Co-Founder of Perennial Investment Partners, his track-record in both markets and business made him an excellent choice to lead this venture. We look forward to working with him to develop 8IP into one of the leading specialist asset management businesses in Asia,” said Pfaff.
Eight Investment Partners will be authorised and regulated by the Australian Securities & Investments Commission and its strategy will include Asia and Australian equities, allowing for investment by both on-shore and off-shore clients. It will be well resourced and is expected to start trading on the fourth of January 2010.
Series says, “I am excited to once again be heading a dynamic specialist funds management company and to be in partnership with such a well regarded global investment organisation. Our relationship with a strong international partner will ensure we have financial backing, business strategy input, global distribution, resources and governance. This will allow the investment team to focus on generating superior long term returns for clients. Investors are increasingly recognising the benefits of investing in Asia and I expect this to accelerate over the coming years.”
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