*This content is brought to you by Bridge FM, the asset managers specialising in Active Income Management
Grindrod Asset Management (GrAM), an established player in the financial services sector which at the end of December 2016 had assets under management of R14.5 billion, has introduced a new shareholder in the form of Infinitus Holdings (Pty) Limited (Infinitus), an investment holding company focused on high growth businesses in the consumer, industrial and financial services sectors.
The transaction has also provided the opportunity to introduce a new brand for GrAM and from mid-January 2017 the asset management business will trade as Bridge Fund Managers.
The transaction sees Grindrod Limited via its subsidiary GFS Holdings (Pty) Limited (GFS), exchange its entire GrAM shareholding for Infinitus shares, thereby increasing its already significant shareholding in Infinitus. Post the transaction, Infinitus will hold 76% of Bridge FM (GrAM) equity, with management and staff retaining the remaining 24% interest. The 24% shareholding ensures that key employees’ interests are appropriately aligned with shareholders – a philosophy that Infinitus subscribes to in all its investments.
After the transaction GFS will own 49% of Infinitus and therefore Grindrod retains a major indirect stake in Bridge FM (GrAM). “So Grindrod is not exiting, but changing the way it holds its interest in the business,” said David Polkinghorne, Managing Director of GFS. “This is an important step to free up the business to develop its own identity as Bridge Fund Managers and pursue sensible growth opportunities whilst retaining its loyal client base. Grindrod will continue to support the business in every way.”
Mark Logan, CEO of Bridge FM (GrAM), says the rationale for the transaction is to unlock greater opportunities to increase assets under management and grow revenues through access to additional retirement funds, retail investors and high net worth individuals.
Greg Heron, CEO of Infinitus, says: “Bridge FM (GrAM) is an excellent asset that will form the core investment in our financial services pillar. We are excited by its growth prospects and the further strengthening of the relationship between Infinitus and Grindrod. Infinitus is a long-term investor and we are confident that with the talented and highly motivated Bridge FM (GrAM) management team, our networks and proven track-record in adding value to our investments, that this will be a great addition to the Infinitus portfolio.”
Read also:Â Paul Stewart: Too soon for obituary of active management
A specialist asset manager operating in the retail, institutional, private client and stockbroking markets, Bridge FM (GrAM) is creating awareness in the investment community of the gap that exists between an industry often perceived as being more focused on how it performs relative to its peers, than on its clients who are distressed by high fees and inconsistent outcomes.
Paul Stewart, Executive Director and Head of Fund Management at Bridge FM (GrAM), says: “Our driving force is to overcome the current disconnect that exists between clients and asset managers. There are expectation, understanding and trust gaps, which often lead to misaligned outcomes over time. The industry earns its fees, however client’s investment objectives are often not achieved. We aim to bridge the gap between what the industry promises and actual client outcomes.”
The business will trade as Bridge Fund Managers from mid-January 2017 with the new brand better equipped to communicate the company’s investment philosophy and connection with its loyal client base.
“Bridges connect places, people and ideas, provide a secure and more direct route to a destination, and are custom-designed for a particular purpose and terrain. But they also require regular maintenance, just like clients’ investment portfolios and plans, to ensure that they produce the desired and promised outcomes,” says Stewart.
This is why Bridge Fund Managers utilises its Payers & Growers® investment methodology to craft investment portfolios to match individual client requirements, by securing high and growing income streams and inflation-beating capital returns, rather than investing only to beat a benchmark or index.”
