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Nedcor And Old Mutual Consolidate Wealth Management Position
28 October 2002
CAPE TOWN: Nedcor and Old Mutual today announced bold new initiatives which
place the financial services group at the forefront of bancassurance in South
Africa.
This follows Nedcor`s recent acquisition of BoE, which complements the Group`s
customer segmentation strategy and provides the impetus to strengthen its
offerings to the high net worth market.
Certain assets of Old Mutual, Nedcor and BoE will be leveraged into a single
onshore business headed by Paul Leaf-Wright. It will focus on the high net
worth market by combining the trust, fiduciary, private banking and
discretionary portfolio management components of the businesses.
Businesses that will be incorporated into the new venture include BoE Private
Bank, Syfrets Wealth Management, Syfrets Trust, BoE Personal Stockbrokers, Old
Mutual Trust and Franklin Templeton NIB Investments (the Private Client Asset
Management component).
According to Nedcor`s Tom Boardman, this new entity will be a 50/50 joint
venture between Old Mutual and Nedcor and will report into Nedcor. "The entity
will be branded BoE, building on its distinguished history in the areas of trust
and fiduciary services, wealth creation and private wealth management".
Says Roddy Sparks, Old Mutual SA MD: "As a Group we are continually looking for
synergies across our offerings and for areas of overlap.
"We believe that the proposed restructure will offer significant benefits to the
Group and strengthen our value proposition at the high net worth end of the
market."
As a further enhancement of bancassurance, BoE Life Assurance will be
incorporated into a 50/50 joint venture between Old Mutual and Nedcor and will
focus on providing credit life cover products for distribution into the Nedcor
client base. This builds on similar initiatives currently in place between Old
Mutual and Nedcor.
A controlling stake in BoE Asset Management will be sold to Aka Capital, the
black empowerment private equity and investment group headed by Reuel Khoza. The
Nedcor Group will retain a minority stake and Old Mutual will be acquiring a
minority stake in BoE Asset Management.
Other aspects of the current restructure involve multimanager services and
investment administration. To this end, Old Mutual will acquire 100% of BoE`s
Edge multimanager and NIBi multimanager offerings (the local component), which
will be incorporated into its SYmmETRY onshore multimanager portfolio. Also to
be acquired outright by Old Mutual is BoE Investment Administrators. It is
planned for this business to continue to run independently for existing clients,
while allowing scope for similar solutions for new clients.
Says Leaf-Wright: "These initiatives will improve the synergies between a host
of related wealth creation and private wealth brands.
"We are not only going to provide comprehensive financial solutions to all our
clients but they will benefit from the rest of the Group`s strengths in the
personal finance, insurance and banking arena.
"The restructure will facilitate choosing the best processes and practices from
each business in order to offer our clients excellent products and services into
the future."
Leaf-Wright points out that existing clients of the affected brands should
continue to deal with their normal client contact person. He assured clients of
each of the affected brands that they would be kept informed along the way and
once the changes take place.
It is envisaged that all the changes will take effect early in the new year,
once all regulatory approvals have been obtained.
ends
For more information:
Roddy Sparks
MD Old Mutual SA
Tel: (021) 509-2212
Paul Leaf-Wright
Head BoE
Tel: (021) 416-6449
Jacqui Bennett
BoE
Tel: (021) 416 6375
Date: 28/10/2002 12:16:00 PM Produced by the JSE SENS Department
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