Ashburton Investments, the asset management business of FirstRand Group, is buying South African firm Atlantic Asset Management, including the Atlantic Specialised Finance division.
Effective 1 January 2016, the deal will add to Ashburton’s existing fixed income business, adding Atlantic’s expertise in social impact investments. The Atlantic fund range will be rebranded and incorporated into Ashburton Investments, but the mandates and teams will remain in place.
Atlantic CIO Arno Lawrenz will be appointed head of Fixed Income Portfolio Management at Ashburton.
Heather Jackson, CEO of Atlantic Specialised Finance, will work with the alternatives experts within Ashburton.
Boshoff Grobler, CEO of Ashburton Investments, said: “Atlantic has some of South Africa’s best expertise in the traditional fixed income and money market space, as well as being pioneers in social impact investing. We believe their entrepreneurial spirit and their investment philosophy is a perfect match for ours and that our combined experience consolidates Ashburton’s ability to offer clients a stand apart fixed income offering.”
The acquisition will also help position Ashburton favourably in respect of what it sees as an ongoing shift in asset allocation by institutional investors. Grobler said that assets such as South African unlisted credit represent a high quality opportunity, in which institutional investors are under invested.
Grobler added that Ashburton Investments was now very well placed for the ongoing shift in asset allocation by institutional investors.