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Liontrust to buy Majedie in £120m deal

Liontrust to buy Majedie in £120m deal

Liontrust has announced plans to buy Majedie Asset Management in a deal worth up to £120m.

The deal would see £5.8bn in assets under management and advice transferred to Liontrust, according to a statement published today (December 7). This will see Liontrust’s assets climb to £42.3bn.

If the deal goes through Majedie’s chief executive, Rob Harris, would become Liontrust’s head of global international business. 

All of Majedie’s investment team would join Liontrust, becoming part of a ‘Global Fundamental Team’ division headed up by Majedie’s chief investment officer and co-founder James de Uphaugh.

Majedie's team will continue to manage their current funds and portfolios consistent with their existing investment process, just under the Liontrust rather than the Majedie brand.

These include global equity, global focus and international equity funds (£332m), UK equity, UK focus and income funds (£1.6bn), the US equity fund (£272m), global long and short funds (£379m) - and the £1bn Edinburgh Investment Trust.

The transaction will also include the transfer of 15 additional funds and portfolios, split into segregated accounts with assets totalling just under £2bn.

A key reason for the deal was Liontrust’s focus on “significantly boost[ing]” its existing institutional proposition, a segment of the market where it wants to “accelerate growth” through increasing scale, distribution and client base.

John Ions, Liontrust's chief executive, said: "Majedie is an important acquisition for Liontrust because of its strong presence and reputation in the institutional market..

“Liontrust has been increasing our number of institutional clients and the purchase of Majedie will hasten this expansion by enhancing our investment capability and client service credentials.”

"Given the growing demand from institutional investors for global equity managers, we believe we can expand this client base further for the Majedie investment team, as well as take advantage of Majedie's institutional expertise," he added.

Ions said Majedie houses an “experienced team with a robust investment process”, praising its long-term performance and its appointment by The Edinburgh Investment Trust last year.

The fund management group also said the acquisition would allow it to remove duplicate administrative activities across both businesses.

Harris said: "Our strength in the institutional market, combined with Liontrust’s impressive sales and marketing capabilities, will enhance distribution for our investment team and offer a resilient, long-term proposition for our clients. Together, we will offer a fully resourced, best of breed fund management capability which is true to our heritage and ready to embrace the future with its myriad challenges and opportunities.

"It was very important that our existing clients would be unaffected through the management of their investments and the service they receive. This is being delivered, with no changes to the Majedie investment team who will continue managing accounts and funds to the same investment process as before the acquisition."

ruby.hinchliffe@ft.com