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Investec to demerge and list its asset management firm IAM


South Africa’s Investec is to demerge and publicly list its asset management division, IAM. IAM is currently an independent global asset manager, within the group, that has grown third party assets under management from GBP40 million in 1991 to GBP109 billion as at 31 August 2018.

IAM has also organically grown third party assets under management at an annual compound rate of 13.7 per cent over the last 10 financial years. IAM’s global investment platform offers specialist investment products and services. It serves its global client base through five geographically defined client groups. Its principal offices are in London, Cape Town, New York, Sydney, Hong Kong, Singapore, Luxembourg, Guernsey, Windhoek and Gaborone.

The firm’s clients include private and public sector pension funds, financial institutions, corporates, foundations, central banks and intermediaries serving individual investors.
The company writes that as an independently listed company, IAM will be better positioned to accelerate its growth and have an enhanced ability to attract and retain investment talent.
The move comes after the February announcement that Stephen Koseff and Bernard Kantor will step down from their roles as CEO and Managing Director, respectively, on 1 October 2018.

Fani Titi (pictured) and Hendrik du Toit will become Joint CEOs of the Group on 1 October 2018. Kim McFarland will also become an executive director of the Group Board on that date. Ciaran Whelan will assume his role as Global Head of Risk on 1 April 2019.

Following the implementation of the IAM demerger, Fani Titi will lead the remaining Group and Hendrik du Toit will lead IAM.
The company writes that it is intended that IAM will be listed on the London Stock Exchange.

Stephen Koseff, CEO and Bernard Kantor, Managing Director, say: “Our individual businesses are well-positioned strategically, with strong market positions and good prospects. It is now the right time to demerge and list our asset management business to support it in the next phase of its development.
“In recent years we have also made good progress in expanding our banking and wealth management franchises in our two key markets and improving their operational and financial performance. We believe the Transaction will allow these businesses to fulfil their full potential and shareholders will benefit from future value creation through direct ownership of two separately listed companies.” 
Fani Titi and Hendrik du Toit, Joint CEO Designates say: “We are confident that the proposed demerger and listing of IAM provides the simplicity of structure and focus to enhance the long-term prospects of IAM and the remaining Group for the benefit of our shareholders, clients and employees. Investec has a heritage and culture of which we are proud, shaped by the dedication and commitment of our employees and the support of our clients. We look forward to working closely as Joint Group CEOs during this phase of our evolution and to implement this Transaction which we expect will create significant shareholder value over time.”

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