Contango acquires Switzer AM
Contango Asset Management (CGA) has acquired the remaining 53.75 per cent interest in Switzer Asset Management (SAM), increasing its ownership to 100 per cent, and offered a chief executive role (CEO) to Marty Switzer.
Apart from further advancing CGA’s business objectives, with a particular focus on listed and exchange traded investments targeted at retail, self-directed and independent financial advisory channels, the acquisition’s benefits would include acquiring a retail licence which would enable CGA to launch retail-backed investment funds, the firm said.
Further to this, the agreement would help expand the access to retail and independent financial adviser relationships, developed by Switzer Financial Group (SFG).
Additionally, under the terms of the deal, CGA would be also entitled to use the Switzer name and align the distribution, marketing, investment expertise, portfolio managements and operational experience of both CGA and SFG.
The transaction remained conditional upon the approval of the shareholders of the company which would call an extraordinary general meeting of its members in May.
Following the acquisition, Marty Switzer who acted as CEO of the company on an interim basis, accepted the offer to take on the CEO role on a permanent basis.
Also, Peter Switzer would remain chairman of the investment committee of SAM while Paul Rickard would continue as a member of SAM’s Investment Committee.
SAM currently has around $110 million in funds under management (FUM) and is a responsible entity (RE) for two managed investment schemes which included the Halidon Yield Enhanced Fund, an unlisted retail managed fund with FUM of approximately $32 million, and the Switzer Dividend Growth Fund (SWTZ), an exchange traded actively managed fund with FUM of around $78 million.
CGA said in its announcement issued to the Australian Securities Exchange (ASX)that the consideration for the acquisition would be 7,166,667 fully paid ordinary shares in CGA to be issued to the vendors pro rata to the shares being sold by each of them.
The company also said there would be no cash component of the consideration.
AUTHOR
Oksana Patron
Recommended for you
Amid a growing appetite for alternatives, investment executives have shared questions advisers should consider when selecting a private markets product compared to their listed counterparts.
Chief executive Maria Lykouras is set to exit JBWere as the bank confirms it is “evolving” its operations for high-net-worth clients.
Bennelong Funds Management chief executive John Burke has told Money Management that the firm is seeking to invest in boutiques in two specific asset classes as it identifies gaps in its product range.
Responsible investment performance concerns have lessened as the market hits $1.6 trillion in AUM, according to RIAA’s annual report, but greenwashing fears among asset managers are on the rise.
