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Sanlam acquires Tideway's £200m fixed income arm

Sanlam acquires Tideway's £200m fixed income arm

Sanlam's asset management arm has acquired rival Tideway's three open-ended funds alongside a four-strong fixed income team. 

The deal will see Sanlam Investments manage and rebrand Tideway GBP Hybrid Capital Bond fund, Tideway GBP Credit fund and the Tideway High Income Real Return fund from the beginning of next week (April 20). 

The Tideway open-ended funds hold more than £200m of fixed income and alternative assets, adding to the £5.3bn of client assets currently managed by Sanlam Investments. 

As part of the deal a fixed-interest team of four will be joining Sanlam, headed by former Tideway chief investment officer Peter Doherty in the role of head of fixed interest.

Tom Carroll, head of asset management at Sanlam Investments, said the deal was an opportunity for the asset manager to broaden its investment capabilities.

Mr Carroll said: "The addition of these new fixed income funds means that Sanlam Investments offers a full range of successful products across the three fundamental building blocks for investment portfolios – equities, fixed income and alternatives.

"We are very keen to continue adding to our suite of teams and products offering differentiated and compelling capabilities for our clients and remain in growth mode in spite of the current uncertainty."

The team transferring to Sanlam also includes fund managers Guillaume Desqueyroux and Darren Reece and portfolio and research assistant Chris Turdean. 

James Baxter, managing partner at Tideway Investment Partners, said: "This is a natural progression for the Tideway Ucits funds business and importantly we expect it to benefit all investors in time through economies of scale and extra research resources to support the asset management process.

"The migration of the Tideway Ucits funds to a larger institutional home is something Peter and I have been working on for some time together.

"The funds have been and will remain an important part of the Tideway Wealth Management proposition, whilst allowing Tideway flexibility to deliver great outcomes through relationships with a variety of other third party asset managers."

Darius McDermott, managing director at Chelsea Financial Services, said: "This looks like a nice deal for all parties. It's a good deal for Sanlam given they are adding around £220m of assets to their business which is good in the current climate.

"For the team of managers at Tideway, given they have good performance they will hope for greater exposure and the ability to raise assets for their funds." 

rachel.mortimer@ft.com 

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