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Ashburton in Atlantic deal

Anna Lyudvig
Feb. 28, 2016, midnight
37

Word count: 607

Ashburton Investments has recently acquired 100% of boutique Cape Town fixed income asset manager Atlantic Asset Management, which includes the Atlantic Specialised Finance division. The acquisition complements Ashburton Investments’existing new generation fixed income business by adding to its range of traditional fixed income funds as well as introducing Atlantic's expertise in managing social impact investments. Ashburton Investments’s CEO Boshoff Grobler (pictured) and Head of Fixed Income, Shalin Bhagwan, tell AGF about the acquisition and future plans

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Ashburton Investments has recently acquired 100% of boutique Cape Town fixed income asset manager Atlantic Asset Management, which includes the Atlantic Specialised Finance division. The acquisition complements Ashburton Investments’existing new generation fixed income business by adding to its range of traditional fixed income funds as well as introducing Atlantic's expertise in managing social impact investments. Ashburton Investments’s CEO Boshoff Grobler (pictured) and Head of Fixed Income, Shalin Bhagwan, tell AGF about the acquisition and future plans

Africa Global Funds (AGF): Why have you acquired this business?
Boshoff Grobler (BG): 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.

AGF: With this acquisition, how many funds do you offer in the fixed income space?
Shalin Bhagwan (SB): Ashburton Fixed Income caters for two specific market segments: retail investors and institutional investors. Including Atlantic, Ashburton offers five fixed income funds for the retail segment, which are in collective investment scheme format (i.e. mutual fund).

The institutional market operates on a more bespoke basis, where tailor made solutions are constructed using our new generation fixed income investing approach. Our cross discipline approach (Real economy credit + Impact investing + Rates and inflation + Solutions and financial engineering) allow us to cater for specific client needs based on client specific risk benchmark. Clients can also access each discipline on a standalone basis depending on their needs.

AGF: What are your growth plans going forward?
BG: In carrying out our business activities and pursuing new avenues of growth, we are driven by three "Why's for existing", our three long term measures of success. These are:
1) Increasing participation in financial markets, giving a greater number of individuals access to quality investment product.
2) Enabling investors to save more efficiently.
3) Funding the African continent.

It is with these goals in mind that we will continue to seek out new growth opportunities (organic and inorganic), such that they can materially impact the realization of our "Why's".

AGF: What can we expect from Ashburton this year?
BG: In servicing our first imperative, we will continue to expose pools of new investors to reputable financial advice and quality investment products. We have already seen noteworthy progress, as evidenced by the stellar growth that has been achieved on products sold through FirstRand Group channels. We also expect to see significant strides being made in this area through our selection of robust Outcomes Based Solutions, which will provide investors access to superior risk adjusted returns.

In meeting our second goal, we are driven by our conviction that alternative assets and new generation fixed income solutions are key compliments to traditional assets in extracting sustainable returns over the long term. To this end we have made substantial advances into the pension fund and institutional investor markets through both our unique assets and our diversified offerings, where assets under management have grown considerably. We will maintain our focus in these markets as we continue to see sizeable opportunities, more so following the augmentation of our fixed income capability that has been enabled by our recent acquisition.

Our undertaking to be a significant partner in the allocation of capital to assets on the broader African continent has made meaningful progress over the last year and we anticipate a significant gain in the deployment of capital to high-caliber real economy assets. There remains substantial scope for growth across the continent which will present attractive entry points for discerning investor.

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