Momentum Investments’ international investment management division, Momentum Global Investment Management (MGIM), has made a significant acquisition which will increase its market share in the UK and its other global markets.
MGIM, the UK-based subsidiary of Momentum Metropolitan Holdings Limited (listed on the Johannesburg Stock Exchange), has acquired Seneca Investment Managers Limited (SIML).
This transaction significantly enhances the growth potential of the combined business, both in the UK and its other global markets, creating an entity with assets under management of £4.7 billion.
MGIM and SIML are both successful multi-asset management businesses, with a shared philosophy of outcome-based investing and a history of close collaboration with financial advisers, discretionary fund managers (DFMs) and wealth managers since 1998 and 2002, respectively. The deal brings together SIML’s strong UK presence with MGIM’s global client base to offer products domiciled in the UK, Luxembourg and Guernsey.
It will provide clients of Momentum Investments, and specifically Momentum Wealth International, with more investment options.
Jeanette Marais, CEO of Momentum Investments and chair of the MGIM Board, said: “MGIM is a core part of Momentum Investments as the Group’s international investment capability, and the acquisition provides us with growth opportunities in a large investment market. The transaction brings together two successful multi-asset management businesses that will provide a stronger offering and broader capabilities for our clients in South Africa, and globally. We are pleased that we share a culture of building partnerships with financial advisers, discretionary fund managers and wealth managers, which will bode well for the growth of the strengthened company.”
The business will maintain its presence in London and Liverpool to ensure that clients experience seamless continuity of service with the additional benefits of a stronger offering and broader capabilities. No staff redundancies are foreseen as a result of the transaction. The completion of the acquisition is subject to UK regulatory approvals.
The transaction will combine the VT Seneca Funds and the Seneca Global Income & Growth Trust plc, managed by SIML, with MGIM’s three Focus Funds and range of seven managed model portfolios to create a comprehensive offering for financial advisers, DFMs and retail investors. The Seneca funds will assume the Momentum brand but will continue to follow SIML’s naming conventions.
Ferdi van Heerden, MGIM CEO said: “This is a very exciting acquisition. The two teams complement each other well and have a strong cultural fit. The acquisition will enable MGIM to meet the growing demand for multi-asset investment solutions from advisers, discretionary fund managers and their clients. The combined business creates a strong foundation on which to accelerate our growth as an investment solutions provider to the UK adviser market and service our growing national client base.
"Personal service and engagement are at the core of both MGIM and SIML and will remain a primary focus of the combined business. The integration of the two companies will therefore be carefully managed through a phased approach with the aim of carefully looking after the interests of the existing investors, supporting clients and employees of both MGIM and SIML."
David Thomas, Chief Executive of SIML said: "MGIM is a partner that shares our ideals and outcome-based approach to investment: the fit is therefore very compelling and enables us to provide continuity and enhanced service to our clients, partners and investors. This deal adds value to all parties: it builds scale while maintaining the nimbleness and dynamism of a boutique; it strengthens the investment team; and it creates a comprehensive range of multi-asset funds and model portfolios, alongside our flagship investment trust client. Importantly, investors will enjoy the ongoing support and servicing delivered by a larger client services team. In addition, given the significant growth prospects for the combined business, the future opportunities for all employees are considerably enhanced.”
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