- Financial services group Sanlam, and Absa banking group have announced their decision to combine their investment management businesses by setting up an asset management company.
- The company will deal with assets under management, administration and advice in excess of R1 trillion.
Financial services group Sanlam, and Absa banking group have announced their decision to combine their investment management businesses by setting up an asset management company. The company will deal with assets under management, administration and advice in excess of R1 trillion.
Under the agreement, Absa will exchange its investment management business, Absa Investments, for a stake of up to 17.5% in Sanlam Investment Holdings Proprietary Limited (SIH). Absa Investments includes Absa Asset Management, Absa Alternative Asset Management, Absa Fund Managers and Absa Multi Management. It has also been agreed that Satrix, a subsidiary of SIH, will acquire the exchange-traded funds (ETF) business of Absa’s NewFunds (excluding its commodity ETF business. Absa and SIH will also enter into a 10-year distribution agreement that will significantly expand market reach for the enlarged SIH.
The transaction is expected to come into effect in the first half of 2022.
