The South African asset management industry is undergoing significant change at present. To ensure that we continue to build on the foundation that we have laid since our founding 8 years ago, Atlantic has embarked on a new phase in our history. We are confident that these new developments will deliver on our promise of providing access to more sources of return and greater risk management for our clients.
BACKGROUND TO DEVELOPMENTS
The Atlantic Board has been constantly applying its mind as to how best we respond to changes in the industry and at the same time considered the best possible strategic direction we employ going forward. In considering strategic options, our chief consideration has always been to seek the most optimal outcome for all stakeholders; most importantly for our clients but also for the team at Atlantic.
THE WAY FORWARD
We have identified a partner with whom we have been in strategic discussion over the past few months. I am pleased to inform you that Ashburton Investment Holdings will be acquiring 100% of Atlantic Asset Management effective 1 January 2016. This acquisition has been pending subject to Regulatory approval which has now been approved by the South African Reserve Bank (SARB).
Both Atlantic and Ashburton are of the view that this transaction meets the strategic imperatives of both businesses to manage client’s assets well and service clients optimally. We share a top down, macro investment philosophy making this a seamless match for both Atlantic and Ashburton.
As part of the FirstRand group, we have access to considerable research and skill that will add to Atlantic’s investment skills and therefore benefit our clients first and foremost. This combination of specialist skills and experience enhances the team’s ability to offer our clients a holistic new generation fixed income offering.
Atlantic’s entrepreneurial spirit and values lend themselves to a good cultural fit for both businesses, where clear synergies will be realised. One of which is to broaden our reach into the retail and institutional markets.
WHAT THIS MEANS FOR CLIENTS & PARTNERS
Ashburton is acquiring the business which includes both the investment team and operations staff. Post the transaction, your interaction with us will not change. The Atlantic funds and mandates will continue to be managed according to the same investment philosophy, with the same due care by the same team. This however will now be done under the Ashburton Investment’s brand.
Arno Lawrenz, Heather Jackson, Albert Botha, Rob Nagel and myself all take lead roles within the Ashburton leadership team. Together with the rest of our investment team, we will continue to support the investment process in the same manner with which you are familiar. Subject to regulatory approval, the Atlantic funds will, in time, rebrand to Ashburton.
Please see Ashburton’s communication here. These developments will be noted in the press later today.
Effective early January 2016, we will be moving from our offices in Bree Street Cape Town into the next door FirstRand building at Portside. You will still be able to contact us on our old details and as they change we will inform you timeously.
We’re very excited about the opportunities these synergies between Ashburton and ourselves create for our clients and our partners. I trust that you will view this change in the same positive light that we see it. Please do not hesitate to call me, should you have any questions.
I take this opportunity to wish you a merry festive season and thank you for your support over the past year. We look forward to continuing to service you in the years to come.