Liontrust to acquire GAM Holding AG
Liontrust to acquire GAM Holding
AG
London/Zurich, 4 May 2023
Liontrust, the specialist fund management group, today announces
that it has conditionally agreed to acquire the entire issued share
capital of GAM Holding AG (GAM), a global investment management
firm with GAM’s Investment Management division having AuMA of CHF
23.3 billion (£20.9 billion) as at 31 March 2023.
Highlights
- Creates a global asset manager with
£53 billion in AuMA on a pro forma basis1;
- Accelerates the development of
Liontrust by meeting all seven of our strategic objectives2;
- The Proposed Acquisition, before
transaction and re-organisation costs, is expected to be
significantly earnings enhancing with regards to adjusted diluted
earnings per share for the financial year ending 31 March 2025
(being the first full year post-completion) and in future
years;
- The Consideration will be satisfied
by the issue of 9.4 million new ordinary shares in Liontrust, and
it is expected that GAM shareholders will own approximately 12.6
per cent. of the combined group on Completion; and
- The Proposed Acquisition is
expected to complete in the 4th quarter of 2023
Expands product
- Broadens Liontrust’s fund range and
asset classes, including in fixed income, thematic equities and
alternatives. This provides a platform for growth by providing
enhanced client solutions globally and reduces the correlation of
returns across the fund range through increased
diversification;
- Twelve funds will have assets of
more than £1 billion (seven managed by Liontrust and five by GAM)
and both asset managers have a heritage of responsible
investing;
Strengthens distribution
- Expands distribution globally, with
62% of GAM’s AuMA sourced from continental Europe while Liontrust
is a leading asset manager in the UK with the 6th strongest brand
(Source: Broadridge);
- Increases Liontrust’s physical
presence in Europe, including a long history in Switzerland, and
provides offices in Asia and the US and therefore a platform for
expansion in those areas;
- Creates a broader client base for
the combined group’s funds globally and benefits from the existing
strong relationships with distributors of both asset managers;
Enhances investment talent
- Adds experienced investment teams,
including nine fund managers rated A to AAA by Citywire;
- By AuM, 75% of GAM’s funds were in
the 1st or 2nd quartile of their respective sectors over 3 and 5
years to 31 March 2023
- Liontrust will provide an
attractive home for the active fund managers at GAM: they will
benefit from Liontrust’s focus on independent, distinct processes;
strong risk and compliance culture and framework; delivery across
sales and marketing; a strong brand; financial stability; and the
support provided by the business processes and infrastructure;
Fund management
services
- GAM has reached agreement in
principle to transfer all third-party fund management services
clients serviced out of Luxembourg and Switzerland to a specialist
asset servicing company active across Europe, with further details
to be announced by GAM in due course.
1 Liontrust AuMA of £31,760 million as at 17 April 2023 (source:
Liontrust). GAM’s Investment Management division AuMA of CHF 23,280
million (£20,914 million) as at 31 March 2023 (source: GAM)
2 Be a responsible company and investors;
Deliver market leading investment performance over the longer term;
Diversify the fund range; Expand distribution and the client base;
Enhance the investor experience; Attract and develop talent; and
Develop the business infrastructure to help drive growth.
The Proposed Acquisition of GAM will accelerate
Liontrust’s strategic progress and growth through the broader
investment capability and global distribution of the enlarged
company.
GAM’s investment teams have delivered strong
performance over the long term across asset classes, and nine fund
managers are rated A to AAA by Citywire. By AuMA, 75% of GAM’s
funds were in the 1st or 2nd quartile of their respective sectors
over 3 and 5 years to 31 March 2023. Over three years, 46% of GAM
funds were in the 1st quartile and over five years it was 45%. Over
three years, 37% of GAM funds were in the top decile and 40% were
in the top decile over five years (Source: GAM).
Liontrust will provide an environment to enable
the investment teams to focus on managing their portfolios without
distractions within a strong risk and compliance framework and with
the support of the rest of the business to deliver performance and
a growth in assets.
The broad range of funds and asset classes will
enhance Liontrust’s product range. The expanded range will offer
the potential to grow the combined client base and provides
Liontrust with differentiated performance across the fund range
through the market cycle.
GAM’s existing product offering is complementary
to Liontrust’s especially in fixed income and alternatives. GAM
will strengthen Liontrust’s fixed income offering, adding
capabilities in: Asset Backed securities, Emerging Markets debt,
Global Credit, Global Rates, Catastrophe bonds and Insurance Linked
Securities. Equities will continue to be the largest product for
the enlarged company, with GAM adding and strengthening
capabilities in: Asia, Japan and Emerging Markets, Thematic Global
Equities, Europe, Luxury Brands and UK Income. GAM will also expand
the multi-asset and alternatives propositions and provide a
capability in wealth management.
This increased product depth will be expected to
support growth in Liontrust’s market share over time and enable us
to better mitigate against market volatility and changing demand
for investment styles. The Proposed Acquisition will lead to a step
change in scale, with 12 funds having more than £1 billion of AuMA
(two for Economic Advantage, one for Global Fundamental, four for
Sustainable Investments, four for GAM Fixed Income and one for GAM
Multi-Asset).
Liontrust intends to rebrand all GAM funds as
Liontrust as soon as possible after completion of the Proposed
Acquisition and for the GAM business to operate under the Liontrust
brand.
The acquisition will enhance distribution globally and the
opportunity to increase sales and market share. GAM is
geographically diverse with 3,500 clients based in almost every
continent, with 2,700 in Europe. Switzerland, Germany, Italy, the
US, Iberia and Latin America are GAM’s largest markets outside the
UK.
Liontrust and GAM are both focused on providing
excellent client service and the enlarged company will deliver
engaging experiences for investors globally.
The fund managers and other employees at GAM
will benefit from the environment at Liontrust, the enhanced
distribution, strong brand and marketing, and the resources of the
enlarged company.
John Ions, Chief Executive of
Liontrust, said: “This is a significant acquisition that
accelerates the growth of Liontrust through enhancing our
distribution globally, product capability and investment
talent.
Liontrust and GAM are both client centric
businesses that thrive on providing solutions and first-class
service. The enlarged company will provide the platform from which
to deliver this to a broader client base.
We have been impressed by the quality of the
investment teams at GAM. There is commonality in that Liontrust and
GAM are both committed to independent and distinct processes for
each of their investment teams. Liontrust specialises in providing
an environment in which investment teams can thrive, including
through the excellence of our sales and marketing and a robust
business infrastructure, strong risk and compliance culture, and
the stability that comes with financial strength.
Liontrust is committed to the international
business and client relationships that GAM has built. We are
especially pleased to have such a strong operation in Switzerland
which has been so important to GAM’s heritage.
The quality of the investment teams across the
different asset classes, the talent in the business and the breadth
of the distribution at GAM, combined with Liontrust’s existing
investment capability and strong brand, sales, marketing, and
communications, gives me great confidence we will grow the enlarged
business to create long-term value.
Liontrust and GAM will work together to provide
a seamless transition for clients and enhancing the service
provided in the future.”
Peter Sanderson, CEO of GAM,
said: “I am delighted we have agreed this transaction with
Liontrust. Our distinctive approaches to investing and culture are
closely aligned, and this combination represents the best
opportunity for our talented team of professionals at GAM to
continue to provide clients with high conviction active investment
strategies. The resulting business will have a strong balance
sheet, a broader array of excellent investment products, and a
global distribution footprint from which to deliver growth that our
shareholders can participate in the
future.” David Jacob, Chairman of GAM,
said “I would like to thank all my colleagues at GAM for their hard
work and dedication while we worked to determine the best option
for the future of the firm. I am confident that the loyalty
of our clients will be rewarded since they will now benefit from
the increased capabilities and stability of the combined firm. Our
shareholders have been patient, and I and my fellow Board members
are unanimous in our recommendation that they should tender their
shares in response to the offer from Liontrust.”
-ends-
Notes to Editors:
Liontrust
Liontrust is an independent, specialist asset manager
established in 1995, listed on the London Stock Exchange in 1999
and is a member of the FTSE 250. Headquartered on the Strand in
London with additional offices in Edinburgh and Luxemburg,
Liontrust had £31.8 billion in AuMA as at 17 April 2023. Liontrust
seeks to enable investors to enjoy a better financial future
through investing in a range of global equities, fixed income,
sustainable investment and multi-asset portfolios and funds.
GAM
GAM is an independent investment manager that is
listed in Switzerland and has, within its Investment Management
division, AuMA of CHF 23.3 billion (£21.0 billion) as at 31 March
2023. GAM has global distribution with offices in 14 countries and
is geographically diverse with clients in almost every continent.
It has 3,500 clients globally, of which c. 2,700 are based in
Europe. Headquartered in Zurich, GAM Investments was founded in
1983 and its registered office is at Hardstrasse 201 Zurich, 8037
Switzerland.
For further information please contact:
Liontrust
Teneo (Tel: 020 7353 4200, Email: liontrust@teneo.com) Tom
Murray or Stephanie Mackrell
GAM
Charles Naylor
Head of
Communications and Investor RelationsT +44 7890 386 699
Media
Relations Ute
Dehn Christen T +41
58 426 31 36
Disclaimer regarding forward-looking
statements
This press release by GAM Holding AG (‘the Company’) includes
forward-looking statements that reflect the Company’s intentions,
beliefs or current expectations and projections about the Company’s
future results of operations, financial condition, liquidity,
performance, prospects, strategies, opportunities, and the industry
in which it operates. Forward-looking statements involve all
matters that are not historical facts. The Company has tried to
identify those forward-looking statements by using words such as
‘may’, ‘will’, ‘would’, ‘should’, ‘expect’, ‘intend’, ‘estimate’,
‘anticipate’, ‘project’, ‘believe’, ‘seek’, ‘plan’, ‘predict’,
‘continue’ and similar expressions. Such statements are made on the
basis of assumptions and expectations which, although the Company
believes them to be reasonable at this time, may prove to be
erroneous.
These forward-looking statements are subject to risks,
uncertainties, assumptions and other factors that could cause the
Company’s actual results of operations, financial condition,
liquidity, performance, prospects or opportunities, as well as
those of the markets it serves or intends to serve, to differ
materially from those expressed in, or suggested by, these
forward-looking statements. Important factors that could cause
those differences include but are not limited to changing business
or other market conditions, legislative, fiscal, and regulatory
developments, general economic conditions, and the Company’s
ability to respond to trends in the financial services industry.
Additional factors could cause actual results, performance, or
achievements to differ materially. The Company expressly disclaims
any obligation or undertaking to release any update of, or
revisions to, any forward-looking statements in this press release
and any change in the Company’s expectations or any change in
events, conditions, or circumstances on which these forward-looking
statements are based, except as required by applicable law or
regulation.
- 2023 05 04_ Liontrust to acquire GAM Holding AG_Media Release
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