MGIM acquires UK's Seneca Investment Managers
DURBAN - Momentum Metropolitan Holdings’ UK-based subsidiary Momentum Global Investment Management (MGIM) yesterday said it had acquired Seneca Investment Managers, for an undisclosed amount, in a move that would increase its market share in the UK and other global markets.
The group said the transaction significantly enhanced the growth potential of the combined business by creating an entity with assets under management of £4.7billion (about R101bn). MGIM is an international investment management division of Momentum Investments.
Jeanette Marais, the chief executive of Momentum Investments and chairperson of MGIM board, said the transaction brought together two successful multi-asset management businesses that would provide a stronger offering and broader capabilities for their clients in South Africa and globally.
“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. 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,” Marais said.
Seneca Investment Managers is a boutique, multi-asset value investment specialist, which was founded in 2002 and investors in its funds range from institutions such as pension funds and charities, financial advisers, discretionary private client managers and personal investors. It has more than £600million under management.
The deal brought together Seneca’s strong UK presence with MGIM’s global client base to offer products domiciled in the UK, Luxembourg and Guernsey. The transaction was also expected to provide clients of Momentum Investments and Momentum Wealth International with more investment options. The combined business would maintain its presence in London and Liverpool to ensure that clients experienced seamless continuity of service with the additional benefits of a stronger offering and broader capabilities, adding that the completion of the acquisition is subject to UK regulatory approvals.
Seneca Investment Managers chief executive David Thomas said the fit between the two companies was very compelling and enabled them to provide continuity and enhanced service to their clients, partners and investors.
“This deal adds value to all parties: it builds scale while maintaining the nimbleness and dynamism of a boutique, 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,” Thomas said.
Momentum Metropolitan shares closed 0.69percent lower at R14.42 on the JSE yesterday.