The new arm, Ashburton Investments, will become the fourth financial services franchise of FirstRand, alongside FNB, RMB and WesBank.
The new company’s provision of traditional products in developed and emerging markets will be supplemented by the integration of the investment management businesses of BMJ, RMB Private Bank and RMG Global Market Funds Solution.
In addition to providing traditional, long term investments in single manager, multi-manager and offshore funds, Ashburton Investments said its aim was to differentiate itself by offering sources of return in its core markets that are not readily available to individual and institutional investors.
This includes offering investors the chance to co-invest in debt financing, private equity and credit investments alongside Ashburton Investments and on the same terms. Product providers to Ashburton Investments will be RMB and Ashburton.
FirstRand Group chief executive Sizwe Nxasana said that the integration of the company’s existing capabilities into one international investment arm would bring new investment and asset classes to retail and institutional investor, in the form of alternative and traditional products.
"This will provide investors with a far wider investment choice than currently exists, offering more sources of return and making it easier to save,” he added.
Boshoff Grobler, head of Ashburton Investments said that following the financial crisis there was a need for a larger variety of financial products rather than taking a purely “single minded approach”.
Peter Bourne, managing director of Ashburton International, headquartered in Jersey, added: “We recognise that investors require access to more sources of return, broader investment capabilities and increased focus on risk management.
"As part of Ashburton Investments and the wider FirstRand Group, we will be able to access and deliver new and differentiated solutions for clients.”
