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Implements client-centric outcomes-based investment model
MMI Holdings Limited Group
Incorporated in South Africa
(Registration number 2000/031756/06)
JSE share code (primary listing): MMI
NSX share code: MIM
ISIN NO.: ZAE000149902
(“MMI Holdings” or the “Company”)
Media release
8 July 2015
MMI implements client-centric outcomes-based investment model
MMI Holdings Limited (MMI) announced today that it has entered into an
agreement with a group of key individuals from Momentum Asset Management,
for a management buy-out of a portion of the asset management business.
This marks a first step in the implementation of MMI’s client-centric
outcomes-based investment model.
MMI CEO Nicolaas Kruger says “This agreement is in line with both our
client-centric strategy which has set financial wellness as our core value
proposition to clients, as well as the recent restructuring of MMI’s
operating model into segment-driven businesses, supported by world-class
product capabilities from its Product Centres of Excellence”.
“The MMI Investment and Savings Centre of Excellence has consolidated all
MMI’s investment capabilities under a single business and adopted a
business model that will be guided by our innovative outcomes-based
investment approach. This approach is aimed at delivering a consistent and
predictable return profile for investors by diversifying their investments
between various asset strategies and asset managers. It represents a
fundamental shift in strategic direction for some of our investment
businesses, most notably, Momentum Asset Management,” says Kruger.
Under the outcomes-based investment strategy, MMI will be looking to
partner with independent asset managers for the more active, equity-based
asset strategies, whilst continuing to manage a number of strategies in-
house.
As a first step in what MMI expects to be further partnerships with
independent asset managers, the CEO of MMI’s Investments and Savings Centre
of Excellence, Sibusiso Mabuza, also formerly CEO of Momentum Asset
Management, together with several key individuals of his management team,
are acquiring a portion of the Momentum Asset Management business from MMI.
This acquisition will enable the key individuals to establish a new
majority black-owned and controlled asset management business, in which MMI
will be a shareholder. The transaction will be financed by both MMI and the
key individuals.
Kruger highlights that “In addition to this partnership, MMI will also
support the initiative of Rand Merchant Insurance (RMI) to partner with
independent asset managers, through the newly formed RMI Affiliated
Managers Group”.
Mabuza, CEO designate of the new black-owned asset management company,
says: “We are pleased and excited about this opportunity and look forward
to a meaningful and constructive strategic partnership with MMI. The new
entity will be an independently managed and branded asset management
business with fixed income, equity, multi-asset class and frontier
investment capabilities.”
“We anticipate that the new asset management company will begin operating
in October 2015 with assets under management of R62bn, making it one of the
largest empowered asset management companies in South Africa,” says Mabuza.
“MMI expects significant growth in the market share of black-owned asset
management businesses and we believe that a strategic partnership of this
nature will create significant transformational and economic value for all
stakeholders,” concludes Kruger.
Distributed by Ogilvy PR On behalf of MMI Holdings
Contact: Contact:
Beverley Bradley Lerato Mametse
T +27 (0)11 709 6930 T +27 (0)12 671 8818
M +27 (0)72 272 5166 M +27 (0)84 406 8272
beverley.bradley@ogilvypr.co.za lerato.mametse@mmiholdings.co.za
Sponsor to MMI in South Africa:
Merrill Lynch South Africa Proprietary Limited
Sponsor to MMI in Namibia:
Simonis Storm Securities (Proprietary) Limited
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