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Pacific Asset Management (“Pacific”) today announces that it will become the strategic institutional partner to independent, boutique investment manager, Asset Value Investors (“AVI”), through the acquisition of 100% of AVI’s share capital.
The arrangement brings together two complementary investment management businesses, with Pacific’s institutional infrastructure, technology, operational capabilities and investor support platform, underpinning AVI’s engagement-focused, bottom-up stock selection style, which aims to find mis-priced companies trading below their net asset value.
AVI was founded in 1985 and has built a strong track record through its concentrated, benchmark-agnostic approach. CEO and CIO, Joe Bauernfreund, joined AVI in 2002 and is the sole manager of the AVI Global Trust and AVI Japan Opportunity Trust as well as a number of funds and segregated accounts.
Under Joe Bauernfreund, AVI has become one of Europe’s foremost activist investors and is the investment manager to three London listed investment trusts: AVI Global Trust, AVI Japan Opportunity Trust and MIGO Opportunities Trust. It also manages four open ended funds: AVI Global Special Situations Fund, AVI Japanese Special Situations Fund, AVI Worldwide Opportunities Fund and AVI Japan Discovery Fund.
Following completion, AVI will continue to operate under its own brand as an independent investment boutique. AVI will remain investment manager to the three investment trusts and will continue to manage its range of open ended funds with an unchanged approach, while benefiting from access to Pacific’s industry-leading technology and infrastructure. The transaction will support AVI’s long-term development, broaden its reach with investors and strengthen the client experience. There will be no changes to the investment manager, investment philosophy or process of the investment trusts or funds.
Matthew Lamb, Chief Executive Officer of Pacific Asset Management, said:
“I have long admired what Joe and his team have achieved at AVI. They have earned an outstanding reputation for disciplined value investing and active engagement on behalf of clients. They embody the specialist, craft investment management approach which is fundamental to Pacific’s values, and we are hugely looking forward to working with them.
“Combining AVI’s investment capability with Pacific’s operating platform means Joe and his team can focus on generating alpha for clients, without the distractions that come from non-investment functions and managing a growing business. We believe this model of supported independence is the optimal environment for exceptional investment talent.
“Pacific, backed by the broader Pinnacle Investment Management Group, is well positioned to take advantage of global opportunities for investment in outstanding talent across technology, distribution, and differentiated investment capabilities such as AVI.”
Joe Bauernfreund, Chief Executive Officer of Asset Value Investors, said:
“This is an exciting next chapter for AVI. Pacific’s support will enable us to focus even more intently on what we do best, which is delivering differentiated investment outcomes for our clients, allowing us to grow the business while preserving our unique investment approach and the close relationships we have built with clients over many years.”
Ian Macoun, Managing Director of Pinnacle Investment Management Group (ASX: PNI), said:
“The AVI partnership demonstrates how Pinnacle, alongside Pacific, is unlocking further growth in global distribution to support geographic diversification, affiliate origination, and product innovation.”
“AVI is a genuine market leader with a distinctive approach, a highly experienced investment team, and a proven long-term track record. We are very confident the combination of AVI and Pacific will deliver the alignment and focus clients demand, and ultimately bring AVI’s capabilities to many more investors around the world.”
The acquisition reflects Pacific’s continued commitment to investing in high-quality specialist investment teams and expanding its offering across public markets.
