Financial services group, acsis Limited, has announced that it will be acquiring Medscheme Asset Management (MAM) from Medscheme Limited for an undisclosed amount. As of 1 November 2010, MAM and its entire team will be fully integrated into acsis and will operate under the acsis brand.
acsis is a leading investment consulting and financial planning business that services both the private client and institutional markets. MAM was established in 1994 as a wholly-owned subsidiary of medical scheme administrator, Medscheme Limited, to offer investment consulting and cash management services to Medscheme’s clients.
acsis CEO, Andrew Bradley, says that the transaction with Medscheme is in line with acsis’ strategy of broadening its institutional client base. acsis currently has over R25 billion assets under advice and this acquisition could potentially double this figure over the next five years.
“Through our business partnership with Medscheme and the acquisition of MAM, we will be able to extend our institutional client base to medical aid schemes and mine rehabilitation funds. In turn, MAM’s current service offering will be significantly enhanced as the team will have access to acsis’ comprehensive investment consulting and management process as well as operational and business development support,” says Bradley.
According to André Meyer, CEO of Medscheme, the investment environment continues to evolve and has become more complex in terms of the range of investment options available, the risks, governance, research and monitoring required. This highlighted the need for Medscheme to engage with an appropriate partner with the appropriate resources and infrastructure to help MAM enhance its offering.
“Investment consulting and management are not our core expertise at Medscheme and we recognised the need to find a suitable partner for MAM. acsis has a solid reputation within the financial services industry and has a robust investment consulting and management process, and therefore represents the best fit for MAM,” says Meyer.
Both Meyer and Bradley are confident that by combining forces with acsis, the MAM team will receive the level of support and expertise they require to continue servicing clients effectively and efficiently.
In 2009 acsis was purchased by Old Mutual South Africa and the company has been exploring ways of growing its business and further entrenching its industry leadership. According to Bradley, acsis’ acquisition of MAM provides the company with a valuable opportunity to further extend its leadership position within the local financial services industry.
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