Amundi and Oddo & Cie Reach an Agreement on the Acquisition of KBI Global Investors

By KleinWB, Monday, 23rd May 2016 | 0 comments

 

 

 

                                    AMUNDI, ODDO & CIE, KBI JOINT PRESS RELEASE

 

Paris – 23 May 2016 – Amundi, Oddo & Cie and KBI Global Investors (“KBIGI”) today announced that they have signed a definitive agreement whereby Amundi is to acquire an 87.5% stake in KBI from Oddo & Cie, while the management team of KBI will acquire a 12.5% stake.

KBI Global Investors, a subsidiary of BHF KBI Global Investors Group which was recently acquired by the Oddo group, is a fast-growing equity management firm, headquartered in Dublin, Ireland with offices in Boston and New York and employing 62 people. Its highly experienced investment team manages 7.6 billion euros of assets as of 31 March 2016, mainly across global equity capabilities. KBI has delivered an excellent performance track record over the years, and enjoyed dynamic growth of its assets under management over the past few years (CAGR 2011-15: +28%).

KBI’s clients are well diversified between institutional, subadvisory and third party distributors. The firm has developed successfully in North America which represents 52% of assets under management by client domicile, while Ireland and UK account together for 26%, Continental Europe 14% and Asia 8%.

In 2015 KBI posted net revenues of 31 million euros and a net income of 9 million euros.

Amundi and KBI are highly complementary in terms of product and geographic focus.  KBI’s global equities expertise will strongly augment Amundi’s equity franchise. Likewise, KBI will leverage Amundi’s strong Retail and institutional presence in Europe, Asia and the Middle East.

The transaction benefits from the full support of KBI’s management team, who will hold a material stake in the company. Going forward KBI will retain its distribution, operating and portfolio management autonomy. Sean Hawkshaw will continue as Chief Executive Officer and Noel O’Halloran as Chief Investment Officer. All employees are expected to remain with the firm.

The transaction is fully in line with Amundi’s financial criteria for acquisitions: the deal will be immediately accretive to Amundi’s EPS and will comply with the target of an expected return on investment superior to 10% within three years.

In parallel with this transaction, Amundi and Oddo & Cie will strengthen their cooperation, namely via the cross selling of their investment expertise.

Yves Perrier, CEO of Amundi stated: “we are very pleased to add KBI as a new platform within Amundi Group. This acquisition is perfectly in line with Amundi’s strategy presented at the time of our recent IPO. It will strengthen our offer with a complementary and well-performing equity expertise, that will benefit our clients in Europe, Asia and the Middle-East.”

Sean Hawkshaw, Chief Executive Officer of KBI, commented ‘’Amundi is a highly regarded pure play asset manager and will be a solid long term partner for KBI. We are very excited about this next step in our growth. We believe that the combination of Amundi as a majority shareholder and a meaningful stake held by key employees offers an ideal ownership structure to continue to develop the firm while allowing us to deliver the best possible investment returns and service for our clients globally.’’

Philippe Oddo, Managing Partner of Oddo & Cie, stated: “Amundi will provide a high-quality support both to KBI teams and to their clients, and we are convinced that this co-operation will be successful.”

The transaction is subject to usual regulatory and client approvals, and is expected to close in the third quarter of 2016.

About Amundi

Amundi is the leading European asset manager and among the top ten asset managers worldwide[1], with €987 billion in assets under management (“AuM”) as of 31 March 2016. Amundi is a global player, operating through two business lines: Retail (management of saving solutions distributed in France and worldwide by the Crédit Agricole and Société Générale group networks, worldwide by other banking networks through distribution agreements and managing joint-ventures, and in France and worldwide by third-party distributors) and Institutional (including sovereign funds, companies, insurers of the Crédit Agricole and Société Générale groups and other institutional investors). Amundi has a presence in 30 countries across 5 continents, developed through a combination of organic growth, acquisitions and long-term partnerships. www.amundi.com

About Oddo & Cie

Oddo & Cie is an independent Franco-German financial services group, founded over 160 years ago. Since 2015, Oddo Group has become a Franco-German entity following the acquisitions of Seydler in Frankfurt, Meriten Investment Management in Dusseldorf and BHF bank. With 2,500 employees, including 1,400 in Germany and 1,000 in France, and 100bn euros in assets under management, Oddo & Cie is active in investment banking and capital management in France and Germany, based on significant investment in market expertise. Analysts and IT staff account for 20% of the total headcount. The Group has a specific ownership structure as 60% of its capital is held by the Oddo family and 30% by employees. This “partnership” ethos guarantees the long-term involvement of its teams. At 31 December 2015, Oddo & Cie generated net banking income of 426 million euros, net profit after tax of 91.7 million euros and at 31 December 2015, the Group had over 740 million euros in shareholders' equity. www.oddo.eu

About KBI Global Investors

KBI is a specialist equity manager headquartered in Dublin, Ireland with sales offices in New York and Boston. KBI was formed in 1980 and has been managing assets, predominantly global equities for institutional clients for over 30 years. KBI has a global client base with mandates in the UK, Europe, North America and Asia. www.kbigi.ie

 

Journalists seeking further information and/or who wish to speak with KBI should contact:

Geoff Blake
Director, Head of Business Development
00353 1 438 4400
Geoff.blake@kbinvestors.com

 

[1] Amundi scope – No.1 in total assets under management of investment companies with their main headquarters in Europe - Source: IPE “Top 400 asset managers” published in June 2015, based on assets under management at 31 December 2014.

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Recent news

 

 

 

 
Noel O’Halloran interview on Bloomberg radio, 10th January 2018

Noel speaks to Daybreak Europe’s Nejra Cehic and Markus Karlsson about the vulnerability of the Bond market, volatility and the prospects for continued dividend growth.

Please click on file below to listen to the interview:

Bloomberg radio interview

A SUSTAINABLE, DIFFERENTIATED AND FORWARD-LOOKING SOLUTION FOR INFRASTRUCTURE INVESTORS

New KBIGI Infrastructure strategy offers exposure to the World’s most critical resources, better liquidity than the private market, and importantly enables investors to deploy their capital with immediate effect

Interest in an allocation to infrastructure has grown significantly in recent years, as investors place a greater emphasis on real assets and look to achieve broader diversification.  Sadly, many continue to steer clear of the asset class on the grounds of liquidity, or rather a lack of it – but that is to miss an opportunity.  The listed market offers an increasingly popular means of accessing infrastructure assets, and combines the most attractive attributes of private infrastructure with the benefits of liquidity and daily pricing.  Demand for infrastructure exposure continues to increase, the attractive risk-adjusted-return profile receiving greater attention – and with the World requiring trillions of dollars of investment in sustainable infrastructure over the coming years*, KBI Global Investors today confirmed the launch of its Global Sustainable Infrastructure Strategy.

Significant population growth, rapidly expanding cities, growing societal and economic demand, and the number of ageing and depleted assets in need of rehabilitation or replacement means the demand for clean, safe and high-quality water, energy and food will continue to grow.  The new Global Sustainable Infrastructure Strategy will therefore offer access to a global portfolio of sustainable publicly traded infrastructure companies, delivering solutions in these critical areas – where Dublin-based KBIGI, a pioneer in Natural Resources investing, boasts a core competence.  Its experienced and professional team of nine dedicated investment professionals has been investing in infrastructure since the inception of its Natural Resources strategies in December 2000, and has been managing specialised infrastructure investments in water and clean energy since 2001, and in food since 2008.

Investment summary

The Strategy seeks to deliver strong investment returns within a robust framework, lower volatility and a dividend yield of between 3.5% and 4.5%.  It will deliver material and diverse exposure to water and clean energy infrastructure, food storage and transportation, and to farmland – investing in the owners and operators of infrastructure assets, as well as the beneficiaries of infrastructure investment – as part of a portfolio of publicly listed high conviction stock holdings.  It will:

  • focus on high quality and sustainable infrastructure;
  • be diversified across multiple regions, sectors and end markets;
  • operate a disciplined and long-established investment process;
  • be benchmark agnostic in its approach;
  • be managed with a strong ESG emphasis.

The objective is to deliver a portfolio of securities with the desired risk and projected return parameters – constructed utilising the stock-specific research and stock models from the broader investment team, but focusing heavily on long-term contractual businesses and infrastructure specific investment characteristics, namely: high regulatory support; predictable and stable cashflow; low volatility of earnings; quality of assets and management.

Listed or Private Market?

An allocation to listed infrastructure can provide an important and complementary allocation within investors’ infrastructure portfolios, with many of the same characteristics being sought out in private markets i.e. asset intensive businesses with stable cashflow generation; long duration contracts, often with strong regulatory and/or government backing; attractive dividend yields and attractive risk-adjusted returns; protection against inflation.  However, listed infrastructure provides numerous benefits relative to the private market approach – greater diversity, improved liquidity, lower costs, and most importantly, immediate availability for investment.

Colm O’Connor, Senior Portfolio Manager at KBI Global Investors, who has been appointed Lead Manager on the new Strategy, cites the construction of the infrastructure necessary in the provision of our most critical resources i.e. clean, safe and high-quality water, energy and food to the global population as “our most critical need, and essential for sustainable future social and economic development.  Yet”, says O’Connor, “many institutional investors remain woefully underexposed to infrastructure, and particularly to companies in these critical areas.  For many the realisation is only now starting to dawn that a very high level of investment will be required, particularly over the next decade, if we are to ensure the provision of these most critical resources to the global population.”

The Global Sustainable Infrastructure Strategy – which will offer a lower correlation to the broader equities market, a high and sustainable dividend yield, and predictable cashflow generation – forms part of the KBIGI Natural Resources suite, which includes strategies investing in Water, Energy Solutions and Agribusiness.

To coincide with the launch of the new Strategy, KBIGI has commissioned a new video. This can be accessed at: https://vimeo.com/240138862

* Sources: World Economic Forum (2013-2030); McKinsey Global Institute (2016-2030); United Nations Conference on Climate Change December 2015.

Journalists seeking further information should contact:

Gordon Puckey
Phoenix Financial PR
+44 7799 767 468
gordon@phoenixfinancialpr.co.uk

Investors seeking further information on the new Strategy should contact KBI Global Investors at…….

Peter Fox
Senior Vice President Business Development & Client Services
KBI Global Investors
+353 1 438 4400
peter.fox@kbigi.com

NOTES TO EDITORS

About KBI Global Investors (‘KBIGI’)

Established in 1980, KBI Global Investors is a specialist institutional asset management boutique, offering a range of Global Equities and Natural Resources strategies.  The firm manages assets for a broad range of clients – public and corporate pension schemes, sub-advisory investors, foundations and endowments, wealth managers, private banks and investment intermediaries included.  KBIGI enjoys an increasingly global client base and today holds mandates in the UK, Europe, North America and Asia.  Part of the Amundi Group, the firm is headquartered in Dublin, with additional offices in Boston, Massachusetts.

Originally focused exclusively on the Irish market, managing predominantly domestic balanced mandates, KBIGI continues to manage pension fund assets for some of Ireland’s largest and best-known corporations; today the firm enjoys significant coverage across the global institutional consultant community, offering investment services on both a segregated and unitised basis.

KBIGI boasts a track record of delivering consistent and outstanding risk-adjusted investment performance over the longer term, its highly experienced investment team today managing over €9.7bn*.

The firm is headed by Sean Hawkshaw and has a headcount of 63 people, with members of the KBIGI team holding 12.5% of the equity in the firm.

* This is the combined AUM of KBI Global Investors Ltd and KBI Global Investors (North America) Ltd as at 30th September 2017.

Disclaimers

KBI Global Investors Ltd. is regulated by the Central Bank of Ireland and subject to limited regulation by the Financial Conduct Authority in the UK. Details about the extent of our regulation by the Financial Conduct Authority are available from us on request. KBI Global Investors (North America) Ltd. is a registered investment adviser with the SEC and regulated by the Central Bank of Ireland. KBI Global Investors (North America) Ltd. is a wholly-owned subsidiary of KBI Global Investors Ltd. ‘KBI Global Investors’ refers to KBI Global Investors Ltd and KBI Global Investors (North America) Ltd.

IMPORTANT RISK DISCLOSURE STATEMENT

This material is provided for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to purchase any security, product or service including any group trust or fund managed by KBI Global Investors. The information contained herein does not set forth all of the risks associated with this strategy*, and is qualified in its entirety by, and subject to, the information contained in other applicable disclosure documents relating to such a strategy*. KBI Global Investors’ investment products, like all investments, involve the risk of loss and may not be suitable for all investors, especially those who are unable to sustain a loss of their investment. This introductory material may not be reproduced or distributed, in whole or in part, without the express prior written consent of KBI Global Investors. The information contained in this introductory material has not been filed with, reviewed by or approved by any regulatory authority or self-regulatory authority and recipients are advised to consult with their own independent advisors, including tax advisors, regarding the products and services described therein. The views expressed are those of KBI Global Investors and should not be construed as investment advice. We do not represent that this information is accurate or complete and it should not be relied upon as such. Opinions expressed herein are subject to change without notice.

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS

Any projections, market outlooks or estimates in this document are forward-looking statements and are based upon certain assumptions. Other events which were not taken into account may occur and may significantly affect the returns or performance of the strategy. Any projections, outlooks or assumptions should not be construed to be indicative of the actual events which will occur. Discussions of market conditions, market high/lows, objectives, strategies, styles, positions, and similar information set forth herein is specifically subject to change if market conditions change, or if KBIGI believes, in its discretion, that investors returns can better be achieved by such changes and/or modification. Style descriptions, market movements over time and similar items are meant to be illustrative, and may not represent all market information over the period discussed. Form ADV Part 1 and Part 2 are available on request.

Portfolio Adviser: News Round- Up September 2017
Sector Report - Infrastructure

Matt Sheldon, Senior Portfolio Manager, KBI Global Investors discusses water infrastructure investment.  

Click here to read article

 

 



Tuesday, 19th September 2017


Pound Could Fall Victim to Politics

Markets want to see a coordinated vision on Brexit within the U.K. cabinet, says Noel O’Halloran, CIO at KBI Global Investors. He told Daybreak Europe’s Nejra Cehic and Markus Karlsson the lack of unity looks set to weigh on sterling. He also explained why he believes equities will climb and Treasuries fall.

Please click here to listen to the interview

KBI GLOBAL INVESTORS NOW UN ‘PRI’ A+ RATED ACROSS ALL MODULES

The United Nations supported PRI (‘Principles for Responsible Investment’) has awarded institutional investor KBI Global Investors (‘KBIGI’), an A+ rating – its highest rating – across all three modules relevant to the firm’s overall approach to Responsible Investment, and the management of equities:

  • Strategy and Governance
  • Listed Equity – Incorporation (Screening and Integration)
  • Listed Equity – Active Ownership (Engagement and Proxy Voting)

Signatories of the PRI are assessed against a comprehensive range of Responsible Investing indicators across the aforementioned modules on an annual basis, this year’s PRI’s award underlining the continuing focus on and improvement made by KBI Global Investors in its investment practices.

The PRI is the World's leading proponent of responsible investment, an international network of investors working together to put the six Principles for Responsible Investment into practice – https://www.unpri.org/about/the-six-principles – works to understand the investment implications of environmental, social and governance (‘ESG’) factors and to support its international network of investor signatories in incorporating these factors into their investment and ownership decisions.  It acts in the long-term interests of its signatories, the financial markets and economies in which they operate – and ultimately the environment and society at large. 

The PRI is truly independent and encourages investors to use Responsible Investment to enhance returns and better manage risks.  As of April this year there were over 1,700 signatories (Asset Owners and Asset Managers), with combined assets owned and assets under management of almost $85 trillion).

KBIGI has always had a strong focus on ESG, and is a member of or signatory to the Carbon Disclosure Project, Institutional Investors Group on Climate Change and the UK Stewardship Code (with Tier 1 status), and part of a network of investors which support and promote the long-term benefits of sustainable investment within the context of their individual investment processes and fiduciaries duties.  Earlier this year, the firm’s Water, Energy Solutions and Agribusiness funds were approved as compliant with the European SRI Transparency Code (http://www.eurosif.org/transparency-code).


Welcoming the news of its A+ rating across the board, Eoin Fahy, Head of Responsible Investing at KBIGI said, “We have been part of a vanguard movement, building ESG criteria into our investment processes from an early stage.  Our flagship Global Equities suite of strategies has a strong ESG focus, with the breakout Global ESG Equity Strategy integrating ESG factors into its investment process and maintaining a targeted overall ESG score as calculated by an independent external ESG rating provider.  ESG factors are also clearly at the heart of our Natural Resource strategies, focussing as they do on equity investment in companies providing solutions to the global shortages of clean water, clean energy and safe food.

“The award of an A+ rating, the PRI’s highest rating, across all modules bears testament to the progress we have made as a firm; we will be reviewing our practices to ensure we maintain our focus, and we will look to build on our achievements in this area across both our Global Equity and Natural Resource Strategies.”

– ENDS –

Journalists seeking further information or who wish to speak with Eoin Fahy should contact:

Gordon Puckey

Phoenix Financial PR

+44 7799 767 468

gordon@phoenixfinancialpr.co.uk

NOTES TO EDITORS

About UNPRI Assessment and the KBIGI Rating

Principles for Responsible Investing 2017 Assessment:

Signatories of the PRI are assessed against a range of Responsible Investing indicators within each module.  KBI Global Investors was awarded an A+ rating for all modules relevant to equity investors i.e. Strategy and Governance, Listed Equity – Incorporation, and Listed Equity – Active Ownership.  Details are available on request.

KBI Global Investors submission to the UNPRI, which gives complete transparency on all the firm’s Responsible Investing activity and policies is available at this link: https://www.unpri.org/download_report/34772

The methodology of assessment is detailed at this link:  https://www.unpri.org/download_report/19935

About KBI Global Investors (‘KBIGI’)

Established in 1980, KBI Global Investors is a specialist institutional asset management boutique, offering a range of Global Equities and Natural Resources strategies.  The firm has been managing assets for institutional clients for more than 35 years – public and corporate pension schemes, sub-advisory investors, foundations and endowments, wealth managers, private banks and investment intermediaries included.  KBIGI enjoys an increasingly global client base and today holds mandates in the UK, Europe, North America and Asia.  Part of the Amundi Group, the firm is headquartered in Dublin, with additional offices in Boston, Massachusetts.

Originally focused exclusively on the Irish market, managing predominantly domestic balanced mandates, KBIGI continues to manage pension fund assets for some of Ireland’s largest and best-known corporations; today the firm enjoys significant coverage across the global institutional consultant community, offering investment services on both a segregated and unitised basis.

KBIGI boasts a track record of delivering consistent and outstanding risk-adjusted investment performance over the longer term, its highly experienced investment team today managing over €9bn*.

The firm is headed by Sean Hawkshaw and has a headcount of 63 people, with members of the KBIGI team holding 12.5% of the equity in the firm.

* This is the combined AUM of KBI Global Investors Ltd and KBI Global Investors (North America) Ltd as at 30th June 2017.

KBI Global Investors Ltd is regulated by the Central Bank of Ireland and subject to limited regulation by the Financial Conduct Authority in the UK. Details about the extent of our regulation by the Financial Conduct Authority are available from us on request. KBI Global Investors (North America) Ltd is a registered investment adviser with the SEC and regulated by the Central Bank of Ireland. KBI Global Investors (North America) Ltd is a wholly-owned subsidiary of KBI Global Investors Ltd. ‘KBI Global Investors’ or ‘KBIGI’ refer to KBI Global Investors Ltd and KBI Global Investors (North America) Ltd.

Principles for Responsible Investing 2017 Assessment:

Signatories of the PRI are assessed against a range of Responsible Investing indicators within each module.  KBI Global Investors was awarded an A+ rating for all modules relevant to equity investors i.e. Strategy and Governance, Listed Equity – Incorporation, and Listed Equity – Active Ownership.  KBIGI’s Transparency Report, reporting the data on which the Assessment was made, is published at this link:

https://reporting.unpri.org/surveys/PRI-Reporting-Framework-2016/4940910f-b725-433e-84ca-573cb8533111/79894dbc337a40828d895f9402aa63de/html/2/?lang=&a=1

The methodology of assessment is detailed at this link:

https://www.unpri.org/download_report/19935

 

 

 

 

 

KBIGI has been recognised as an Award winner in the eleventh annual Finance Dublin Deals of the Year Awards 2017 for its Winning Deal - IFS Deal of the Year - Amundi's acquisition of Kleinwort Benson Investors. The Awards recognise the deal makers, the company advisors and the company principals/ representatives. A&L Goodbody nominated KBIGI for the Award. 

Details regarding the win may be found on page 14 of the following Awards Report

(Irish Independent) - After surviving five changes of ownership, along with a drastic switch in its client base, KBIGI has hit a sweet spot in the specialist space and aims to double assets under management to €20bn with the next four years.

Please click here to read the full article

 

 

 

(Bloomberg) -- Political risk in Europe is low according to Noel O’Halloran, chief investment officer at KBI Global Investors. He told Daybreak Europe’s Caroline Hepker and Markus Karlsson that he expects the French election to end in a market-friendly result.

Please click here to listen to interview


The UN World Water Day sets the backdrop for a "third wave" of water investing, which will see $12trn to be allocated to spending on water through 2030, according to Matt Sheldon, senior portfolio manager at Dublin-based KBI Global Investors (KBIGI) writes Alicia Villeagas from Investment Europe. 

To read this article further please click here

World Water Day: Water's investment wave: The favourable investment climate for water companies

World Water Day is held annually on 22nd March as a means of focussing
attention on the importance of fresh water. Notwithstanding the efforts
of the United Nations, which inaugurated this event, the importance of
fresh water is almost always underappreciated, and as a result investors
continue to be significantly underinvested in water. However, this offers
investors an opportunity to gain exposure to a clean natural resource
which has extremely strong demand/supply fundamentals, and which
is the subject of what we believe to be a wave of signifcant investment. When we think about water (and most investors often don’t!), there are some genuinely powerful drivers of the investment theme. 

Click here to read the full article from Matt Sheldon, Senior Porfolio Manager, KBI Global Investors which featured in responsible-investor.com  


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