Allianz Global Investors (AllianzGI), one of the world’s leading active investment managers, has announced that it has agreed to acquire Rogge Global Partners (RGP), the London- based global fixed income specialist.
The transaction, for an undisclosed sum, will see AllianzGI acquire 100 per cent of the issued share capital in RGP from Old Mutual and RGP management. The combination will further strengthen AllianzGI’s growing fixed income capability and client proposition, while providing RGP with a strategic partner which will offer greater distribution potential for its strategies.
AllianzGI’s commitment to building out its fixed income capability has seen it make a number of investments in this area in recent years, including the creation of an Asian Fixed Income team under the leadership of David Tan, the development of its Emerging Market Debt team led by Greg Saichin and more recently the hiring of Mike Riddell to lead the development of its UK Fixed Income capability. These investments augment AllianzGI’s already substantial Fixed Income capability.
Commenting on the transaction, Andreas Utermann, Global CIO and CEO-elect of AllianzGI, said: ”We are delighted that RGP have chosen to partner with AllianzGI as the springboard for the next stage of their development. The two businesses are a natural fit – in terms of both product mix and culture – and we really look forward to working together closely for our clients’ mutual interests. The complementary nature of the fit extends also to geographic footprint, which will substantially enhance AllianzGI’s footprint in the UK as well as making RGP’s strategies available to more clients globally.”
Franck Dixmier, AllianzGI’s Global Head of Fixed Income and a member of its Global Executive Committee, added: ”The addition of RGP is a further important step in the development of AllianzGI’s global fixed income capability. It offers us a unique opportunity to accelerate the development of our client offering in fixed income. As active managers, we share a common philosophy on generating alpha in difficult market conditions and look forward to realising the fruits of this exciting new enterprise.”
Consistent with AllianzGI’s previous acquisitions and integrations, the integrity of the RGP investment team and process will be maintained. The RGP team will become part of the global investment platform, which is set up to preserve the distinct dynamics, processes and philosophies of different investment teams.
As a result of its client-centric strategy and focus on active investing, AllianzGI has attracted positive net inflows in each of the last 11 quarters and has seen the assets it manages in fixed income grow from EUR 109bn to EUR 167bn in the last four years.
Olaf Rogge, Founder, Executive Chairman and co-CIO of RGP, said: “We initiated the search for a new strategic partner back in 2015 with the support of our current majority owner, Old Mutual. Having had discussions with a number of interested parties, we are convinced that the combination with AllianzGI will be in the best interests of clients and will ensure the continued future growth of RGP’s successful investment approach.”
As at the end of September 2015, AllianzGI’s assets under management (AuM) totalled EUR 427bn on behalf of clients, of which EUR 167bn were in fixed income strategies. RGP’s AuM, all of which is in fixed income products, totalled EUR 34bn.
The transaction, which remains subject to regulatory approvals, is expected to close by the end of the second quarter of 2016.