Momentum Investments’ international investment management division, Momentum Global Investment Management (MGIM), has acquired Seneca Investment Managers Limited (SIML), which increases its market share in the UK and its other global markets, and creating an entity with £4.7 billion in assets under management.
MGIM is the UK-based subsidiary of Momentum Metropolitan Holdings, listed on the Johannesburg Stock Exchange.
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, the firm said.
It will provide clients of Momentum Investments, and specifically Momentum Wealth International, with more investment options, it said.
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.”
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, 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: “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.”