It is the latest development in Sanlam’s planned strategy to develop a strong capability across the core asset classes complemented by specialist thematic funds for clients
Deal expected to complete by the end of January 2021
London – Sanlam Investments today announces that it has agreed to assume responsibility for managing eight funds currently managed by Smith & Williamson Investment Management LLP.
Following approval by the Boards of Smith & Williamson Fund Administration Limited and Smith & Williamson Investment Management (Ireland) Limited, the deal will see the management of eight funds, including Smith & Williamson Investment Management’s £584m (as at 30 November 2020) Artificial Intelligence Fund and a number of other equity and fixed interest funds, transferring to Sanlam, adding £1.2bn in assets under management (AUM) to the business.
As part of the arrangement, later in Q1 2021 Sanlam will also take on the investment management responsibilities of the Smith & Williamson Global Gold and Resources Fund which will continue to be managed in Toronto by AGF as sub delegate investment manager.
The deal will take Sanlam Investments’ total AUM to £7.3bn. Ten individuals, including six fund managers, will move to Sanlam as part of the deal.
This transfer of the investment management responsibilities of these funds will enable Sanlam Investments to add further building blocks in its plans to develop a specialist thematic offering. Alongside well-established specialist products such as Real Assets and recent additions (including a Sustainable Global Dividend Team from Martin Currie and Tideway’s Hybrid Capital Fund), Sanlam Investments is now able to offer its clients an exciting range of differentiated funds.
Jonathan Polin, Group CEO, Sanlam UK, said: “2020 was a significant year of investment and growth at Sanlam Investments and we are delighted to be taking on eight funds currently managed by Smith & Williamson Investment Management. Our asset management arm is a core component of our UK business and today’s announcement reflects our commitment to building a truly comprehensive range of funds and investment solutions for our clients.
Assuming responsibility for these new funds enables us to deliver a core suite of funds with strength and depth, as well as develop a specialised offering which will enable clients to participate in some of the big investment themes of the next decade and beyond. Taken together, we believe this is a compelling proposition and will help us to deliver our significant ambitions in the market.”
Despite the many challenges posed since March, Sanlam Investments has continued to deliver on the strategy set-out at the start of 2020 and we look forward to building on this with vigour in 2021.”
Hugo Smith, Managing Director at Smith & Williamson Investment Management LLP, said: “This deal provides an excellent opportunity for our fund managers to work within a business that has a well-known pooled funds brand, strong distribution and is committed to investing in further growth in this area. I would like to take this opportunity to thank the fund managers and other colleagues within the funds team for all that they have contributed to Smith & Williamson Investment Management over the years.”
Sanlam Investments will work closely with the Tilney Smith & Williamson group to ensure ongoing continuity of access to the fund managers.
Funds moving to Sanlam:
Smith & Williamson Enterprise Fund
The Fund aims to achieve positive returns on a rolling 12 months basis, with low risk and low volatility expected, primarily through the use of equities and Contracts for Difference (CFDs). The Fund invests primarily in the United Kingdom. The Fund’s proposition is that it is a UK focused long/ short fund. The Fund was launched in 2006.
Smith & Williamson Artificial Intelligence Fund
The Fund aims to achieve capital appreciation by investing primarily in equity and equity-related securities issued by companies that are engaged, whether by way of research and development, and/or in the provision of services, or in the transformational adoption of such services, in the main activities currently associated with artificial intelligence. The Fund launched in July 2017.
Smith & Williamson European Equity Fund
The Fund aims to achieve long-term growth of capital primarily through investment in Europe. The Fund is managed by using a disciplined screening process that focuses on attractive company characteristics, which we believe the market rewards over time.
Smith & Williamson Global Gold and Resources Fund
The Fund primarily invests in the shares of gold mining, precious metal-related, and resources-based companies quoted on recognised and eligible markets. It aims to deliver capital growth. The Fund is managed by AGF in Toronto.
Smith & Williamson North American Equity Fund
To achieve long-term growth of capital primarily through investment in securities quoted on markets in North America. In order to achieve the Fund's objective, the strategy is to invest in a wide range of companies, large and small, which reflect growth opportunities in various sectors of the North American and global economies.
Smith & Williamson UK Equity Growth Fund
The Fund aims to achieve long-term growth of capital primarily through investment in the UK and looks at UK companies with good prospects for above average growth.
Smith & Williamson Short-Dated Corporate Bond Fund
The aim of the Fund is to achieve income returns greater than the UK Base Rate. The Fund invests the majority of its Net Asset Value in a variety of Sterling, US Dollar and Euro short-dated investment grade corporate bonds of no more than 6 years maturity. The Fund may invest up to a maximum of 30% of its Net Assets in government, agency or Supranational bonds and short-dated Gilts.
Smith & Williamson Fixed Interest Fund
The Fund aims to achieve a high level of income through investment primarily in a variety of investment grade fixed interest instruments. There is no geographical restriction, but the managers have a preference for UK and European companies.
Smith & Williamson Global Inflation Linked Bond Fund
The Fund aims to provide some protection against inflation by investing primarily in investment grade inflation-linked bonds. It may also invest in nominal bonds and other debt securities issued within developed markets around the world. The Fund is created for investors who want to gain inflation-linked exposure to differing monetary and economic cycles.