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Cape Town - Stellenbosch-based investment group PSG [JSE:PSG] has tweaked its fund management offering by merging PSG Fund Management with its subsidiary PSG FutureWealth - a development that might signal a willingness to build additional fund management capacity.
According to PSG's annual report, 95%-owned PSG Fund Management acquired the remaining 20% minority stake in PSG FutureWealth, forming a combined product licensing platform under the PSG Wealth brand.
The deal sees PSG Fund Management's asset management capabilities - long seen as the Cinderella of the PSG group - combined with research and analyst functions now pooled.
Market sources speculated that PSG's consolidation of its asset management functions could signal a willingness to seek out new opportunities to bulk up the business.
PSG Fund Management CEO Ross Breedt told Fin24.com on Wednesday the company would look at any good opportunities to add value and assets to the new look business.
Writing in the annual report, PSG chairperson Jannie Mouton said the company was in the process of creating a single PSG branded asset management business "with a simplified holistic product range covering the full investment risk spectrum".
Mouton said PSG realised that the uncoordinated variety of funds offered by PSG Fund Management confused financial advisers and the investing public.
"This company was therefore not performing to its potential as we did not attract the quantum of assets that our various funds' performance warranted".
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. Mouton said the restructuring of PSG Fund Management should in time result in an increase in assets and performance.
- Fin24.com
According to PSG's annual report, 95%-owned PSG Fund Management acquired the remaining 20% minority stake in PSG FutureWealth, forming a combined product licensing platform under the PSG Wealth brand.
The deal sees PSG Fund Management's asset management capabilities - long seen as the Cinderella of the PSG group - combined with research and analyst functions now pooled.
Market sources speculated that PSG's consolidation of its asset management functions could signal a willingness to seek out new opportunities to bulk up the business.
PSG Fund Management CEO Ross Breedt told Fin24.com on Wednesday the company would look at any good opportunities to add value and assets to the new look business.
Writing in the annual report, PSG chairperson Jannie Mouton said the company was in the process of creating a single PSG branded asset management business "with a simplified holistic product range covering the full investment risk spectrum".
Mouton said PSG realised that the uncoordinated variety of funds offered by PSG Fund Management confused financial advisers and the investing public.
"This company was therefore not performing to its potential as we did not attract the quantum of assets that our various funds' performance warranted".
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. Mouton said the restructuring of PSG Fund Management should in time result in an increase in assets and performance.
- Fin24.com
