BOSTON, May 9, 2021 /PRNewswire/ -- Pendal Group Limited
(Pendal), parent company of J O Hambro Capital Management Limited
(JOHCM), today announced that it has entered into an agreement to
acquire 100% of Thompson, Siegel & Walmsley LLC (TSW), a
Virginia-based value investment
manager, for $320 million.
Established in 1969 and headquartered in Richmond, VA, TSW operates primarily in
long-only equity (U.S. and International), with $23.6 billion of assets under
management.1 The deal will more than double assets under
management by Pendal's U.S. business, which will increase from
$21.1 billion to $44.7 billion.2
Pendal Group CEO, Nick Good,
said, "This is a compelling opportunity to acquire a highly
successful complementary business, which will create immediate
value and facilitate our growth opportunities in the US market.
This acquisition significantly broadens the range of product
solutions we can offer clients via an expanded distribution
network.
"TSW is a natural strategic and cultural fit with JOHCM and the
broader Pendal business, particularly given our shared core belief
in investment team autonomy. Both businesses have solid flow
momentum and strong performing, high conviction investment
strategies. TSW is also highly complementary to our business, with
almost no overlap of investment strategies or clients."
TSW is a highly regarded value-oriented investment manager, with
a solid base of institutional and sub-advisory relationships and a
track record of strong investment performance: four of the six
funds where TSW is the sole sub-advisor are rated either 4 or 5
stars by Morningstar and are ranked first quartile in their peer
group over three years.3 Its investment capability spans
international value equities, U.S. equities and fixed
income.
TSW has an experienced and stable staff of 74 employees
including a long-tenured and talented investment team of 20, with
deep bench strength across all strategies. The TSW team is fully
supportive of the acquisition and aligned with Pendal's values, its
ethos of investment autonomy and its growth aspirations. All TSW
employees will join the Pendal Group and there are no staff
reductions planned. TSW's investment strategies will remain under
the TSW brand.
Mr. Good commented, "Cultural fit is crucial in fund management
acquisitions, and both parties have put significant effort into
considering compatibility, investment and client approach and
alignment."
TSW's CEO, Mr. John Reifsnider,
will be appointed as CEO of Pendal's combined U.S. business upon
close, taking over leadership of JOHCM USA from Mr. Good, who was promoted in March
to Pendal Group CEO, in addition to his current role as CEO of TSW.
Mr. Reifsnider will also join Pendal's Global Executive
Committee.
Mr. Good said, "John is an outstanding leader and the right
person to head the combined U.S. business. He will continue to
drive the positive momentum that is evident in both companies and
seize the new growth opportunities we see ahead of us."
Commenting on the transaction, Mr. Reifsnider said, "This is a
unique opportunity for TSW to join a strategically compatible and
highly regarded global investment management company. Pendal is a
remarkable fit and has strong alignment to our investment approach
and culture.
"All of us at TSW are pleased to be joining Pendal Group. We see
excellent potential for growth and an exciting future.
"I am proud to take on the role of CEO of the combined U.S.
businesses. JOHCM has been very successful in the U.S., with 10
consecutive years of positive flows and an enviable reputation in
the market. Investment autonomy is fundamental to both our
businesses and to our success, and that match has been a very
important consideration for the TSW team."
Mr. Good concluded, "Pendal's acquisition of JOHCM in 2011 was a
tremendous success. We are approaching this acquisition of TSW with
the same intent and focus and are confident that we will be able to
implement a seamless transition."
NOTES TO EDITORS:
About Pendal Group
Pendal Group ("Pendal") is an
independent global investment manager focused on delivering
superior investment returns for clients through active management.
Pendal manages $77.3 billion in AUM
(as of March 31, 2021) in client
assets through J O Hambro UK, Europe & Asia; JOHCM USA; Pendal Australia and Regnan.
Pendal operates a multi-boutique style business across a global
marketplace through a meritocratic investment-led culture. Its
experienced, long-tenured fund managers have the autonomy to offer
a broad range of investment strategies with high conviction based
on an investment philosophy that fosters success from a diversity
of insights and investment approaches.
Listed on the Australian Securities Exchange since 2007 (ASX:
PDL), the company has offices in Sydney, Melbourne, London, Prague, Singapore, New
York, Boston and
Berwyn, PA.
About TSW
TSW is a US-based value-oriented
investment management and advisory company, operating primarily in
long-only equity (U.S. and International) and fixed income, with
$23.6 billion of AUM (as of
March 31, 2021). – AUM adjusted for
the closure of a client account that occurred after March 31, 2021.
Established in 1969 and headquartered in Richmond, Virginia, the company is 75.1% owned
by the NYSE-listed BrightSphere Investment Group (BSIG), although
operates as an independent, autonomous, indirect subsidiary. The
remaining 24.9% of shares in TSW are held by TSW current and former
management.
About J O Hambro Capital Management
(JOHCM)
JOHCM is a boutique investment management
business with offices in London,
Prague, Singapore, Boston, New
York and Berwyn,
Pennsylvania. It manages $43.1
billion of assets (as of March 31,
2020) across Global/International, Emerging Market, U.K.,
European, Asian, and Japanese equities strategies and a multi-asset
strategy. JOHCM manages investment strategy capacity in order to
promote market-leading portfolio performance.
About Regnan
Regnan is a responsible investment
business within Pendal Group with a vision to grow its assets under
management and become a global leader in providing environmental,
social, and governance (ESG) investment strategies and solutions to
clients.
Regnan exists to drive positive impact and investment for a
sustainable future and works towards this by developing and
promoting more principled, rigorous and outcome-oriented approaches
in responsible investment. It has a long and proud heritage in
engagement and advice on environmental, social and governance
issues. Regnan has produced pioneering research that has changed
the way investors think about their wider responsibilities to
society including advising influential organizations, such as the
Principles for Responsible Investment (PRI).
Regnan can trace its roots back to a collaboration with Monash
University, Melbourne, in 1996,
with an investigation into overlooked ESG-related sources of risk
and value for long-term shareholders in Australian public-listed
companies. Regnan has since taken its ESG expertise globally. Its
diverse experience in advocacy, regulation, academia and advising
investment managers has enabled Regnan to offer responsible
investment-related advisory, engagement and research services.
Disclosures
©2021 Morningstar. All Rights Reserved.
The information contained herein: (1) is proprietary to Morningstar
and/or its content providers; (2) may not be copied or distributed;
and (3) is not warranted to be accurate, complete or timely.
Neither Morningstar nor its content providers are responsible for
any damages or losses arising from any use of this information.
Past performance is no guarantee of future results. The Morningstar
Rating™ for funds, or "star rating" is calculated for managed
products (including mutual funds, variable annuity and variable
life subaccounts, exchange traded funds, closed-end funds, and
separate accounts) with at least a three-year history.
Exchange-traded funds and mutual funds are considered a single
population for comparative purposes. It is calculated based on a
Morningstar Risk Adjusted Return measure that accounts for
variation in a managed product's monthly excess performance,
placing more emphasis on downward variations and rewarding
consistent performance. The top 10% of products in each product
category receive 5 stars, the next 22.5% receive 4 stars, the next
35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom
10% receive 1 star. The Overall Morningstar Rating for a managed
product is derived from a weighted average of the performance
figures associated with its three-, five-, and 10-year (if
applicable) Morningstar Rating metrics. The weights are: 100%
three-year rating for 36–59 months of total returns, 60% five-year
rating/40% three-year rating for 60–119 months of total returns,
and 50% 10-year rating/30% five-year rating/20% three-year rating
for 120 or more months of total returns. While the 10-year overall
star rating formula seems to give the most weight to the 10-year
period, the most recent three-year period actually has the greatest
impact because it is included in all three rating periods. Ratings
are for the share class shown only; other classes may vary.
1 As of March 31,
2021, AUM adjusted for the closure of a client account that
occurred post March 31, 2021.
2 AUM as of March 31,
2021. Includes assets managed by JOHCM and its wholly owned
affiliates JOHCM (USA) Inc. and
JOHCM (Singapore) Pte. Limited.
All assets quoted in U.S. dollars.
3 Source: Morningstar Direct as of March 31, 2021, institutional share classes
only.
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SOURCE J O Hambro Capital Management; Pendal Group Limited