Sanlam Investments - the cluster of investment businesses within diversified financial services group Sanlam - has acquired a majority stake in Australian investment management business, Atom Funds Management for an undisclosed amount. The transaction is in line with the cluster’s international expansion strategy aimed at developing competitive investment management capabilities that will enhance growth and asset gathering internationally and in South Africa. The Asia-Pacific region is considered a long term strategic focus area.
Johan van der Merwe (pictured), CEO of Sanlam Investments, says that the Australian asset management industry is the fourth largest in the world with over $1 trillion under management - this is driven by the country’s very successful compulsory savings initiative. “We consider the acquisition as a first step in our Asia-Pacific investment strategy as it offers a springboard for further expansion.”
Head of international investments at Sanlam Investments, Hendrik Pfaff, says that Atom is a relatively new, specialist boutique that was started in 2006 by an experienced management team. “Atom has offices in Sydney, Australia as well as Bangalore, India, from where a team of 10 talented equity analysts provides a comprehensive company research functionality. It follows a long-only investment process with a heavy emphasis on fundamental research.
“Over the past two years, there has been substantial investment in processes, systems and infrastructure and the business is now well positioned for a growth phase with which we will assist,” said Pfaff.
Other focus areas include Europe and the UK as well as India, with an announcement expected soon.
Sanlam Investments acquired Atom through its wholly owned subsidiary SIIP Australia. Atom is regulated under the Australian Securities and Investment Commission.
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