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Johannesburg - Financial services group PSG [JSE:PSG] has confirmed earlier speculation by Fin24.com that its asset management arm, PSG Fund Management, was being restructured to significantly bolster the business.
In an offical press statement on Monday, PSG Fund Management said the restructuring of the company was in line with parent company PSG's growth strategy, and that it was "a concerted effort to create a significant player in the domestic asset management industry".
Last week Fin24.com reported that PSG Fund Management had acquired the remaining 20% minority stake in PSG FutureWealth, forming a combined product licensing platform under the PSG Wealth brand.
The deal saw PSG Fund Management's asset management capabilities - long seen as the Cinderella of the PSG group - combined with research and analyst functions now pooled.
New-look PSG Fund Management will be chaired by PSG veteran Jaap du Toit with Ross Breedt (marketing and sales), Adrian Clayton (equity centric asset management), JP Matthews (fixed interest and hedge fund asset management), René Miles (retail investment platform) and Mike Smith as chief operating officer making up the executive team.
Du Toit said the company needed a more focused approach to benefit from synergies developed from its very successful boutique businesses for PSG Fund Management to realise future growth opportunities. "This will entail a simplified product range with a specifically branded PSG range of funds, clearly differentiated business units and combined research capabilities."
'Not just pie in the sky'
Speaking to Fin24.com, marketing and sales executive Roos Breedt said PSG Fund Management was determined to become a top ten player in the local asset management segment within three years.
"We realise it's a congested market with the top five players holding between 70% to 80% f the market. But we think we can grow market share with a focussed distriution channel."
Breedt said PSG Fund Management aimed to hold R50bn of assets under administration with more than half this amount being held under management. "This would be organic growth... any acquisition would be a bonus."
Breedt said PSG Fund Management was aiming at profits of R100m within three years - a huge leap from the company's current earnings position. "This is what we are working on over a three-year scope... we don't think it's pie in the sky."
In the year to end-February 2010, PSG Fund Management and PSG FutureWealth (then still 80% owned) collectively contributed R28m to PSG's headline earnings.
Jointly, the businesses have R23.4bn in funds under administration and R12bn in funds under management.
Breedt would not be drawn on whether PSG Fund Management - currently 95% owned by PSG - could be separately listed in the medium term. He said any listing decisions would be made by PSG.
- Fin24.com
In an offical press statement on Monday, PSG Fund Management said the restructuring of the company was in line with parent company PSG's growth strategy, and that it was "a concerted effort to create a significant player in the domestic asset management industry".
Last week Fin24.com reported that PSG Fund Management had acquired the remaining 20% minority stake in PSG FutureWealth, forming a combined product licensing platform under the PSG Wealth brand.
The deal saw PSG Fund Management's asset management capabilities - long seen as the Cinderella of the PSG group - combined with research and analyst functions now pooled.
New-look PSG Fund Management will be chaired by PSG veteran Jaap du Toit with Ross Breedt (marketing and sales), Adrian Clayton (equity centric asset management), JP Matthews (fixed interest and hedge fund asset management), René Miles (retail investment platform) and Mike Smith as chief operating officer making up the executive team.
Du Toit said the company needed a more focused approach to benefit from synergies developed from its very successful boutique businesses for PSG Fund Management to realise future growth opportunities. "This will entail a simplified product range with a specifically branded PSG range of funds, clearly differentiated business units and combined research capabilities."
'Not just pie in the sky'
Speaking to Fin24.com, marketing and sales executive Roos Breedt said PSG Fund Management was determined to become a top ten player in the local asset management segment within three years.
"We realise it's a congested market with the top five players holding between 70% to 80% f the market. But we think we can grow market share with a focussed distriution channel."
Breedt said PSG Fund Management aimed to hold R50bn of assets under administration with more than half this amount being held under management. "This would be organic growth... any acquisition would be a bonus."
Breedt said PSG Fund Management was aiming at profits of R100m within three years - a huge leap from the company's current earnings position. "This is what we are working on over a three-year scope... we don't think it's pie in the sky."
In the year to end-February 2010, PSG Fund Management and PSG FutureWealth (then still 80% owned) collectively contributed R28m to PSG's headline earnings.
Jointly, the businesses have R23.4bn in funds under administration and R12bn in funds under management.
Breedt would not be drawn on whether PSG Fund Management - currently 95% owned by PSG - could be separately listed in the medium term. He said any listing decisions would be made by PSG.
- Fin24.com
