GTCO Absorbs Mutual Fund and Pension Subsidiaries Into It’s Bowels, Joins Other Top Players In The Subsector
The Oasis Reporters
February 8, 2022
…deft move to diversify seamless financial services under one canopy
In a recent deft merger and acquisition move by GTCO (much more easily known as GTBank it’s former public name), the Tier-1 financial services company has absorbed the Mutual Fund and Pensions arm of Investment One Financial Services Limited which earlier had announced the sale of its mutual funds and pension businesses to Guaranty Trust Holding Company Plc (GTCO).
This strategic move puts GT at the same level playing field with another top tier-1 lender like Zenith Bank PLC,
GTCO must have been watching closely the trajectory of StanbicIBTC that equally has a strong pensions unit, FCMB whose founder Otunba Subomi Balogun started financial services life in Insurance and the commercial lender equally bent over backwards to absorb another insurance services arm recently and Fidelity Bank that continues to strengthen and fortify it’s pensions unit.
Pension funds are long tenor by nature, making it investment wisdom for banks to buy into it, revving up their laid back operations in line with global best practices. They simply complement each other.
This strategic divestment from the pension business Investment One will enable the outfit to focus on the provision of wealth management, investment banking through enhanced digital services.
The next phase for the future is to expand operations internationally with the aim of becoming a Pan-African company
The transaction represents the next chapter in the strategic development of the Investment One Group. It allows the Group to refocus its investment management and investment banking services to its individual and corporate customers, while enabling its retail customers in the pension and mutual fund businesses to take advantage of the network and service platforms of GTCO in the management of their pension and mutual funds.
The Directors and Management of Investment One are certain that the transfer is a step in the right direction for the Group. They expect the transition to be seamless, considering the cultural and operational similarities between the Group and GTCO (their former parent company). Mr. Nicholas Nyamali, Group CEO of Investment One, expressed his pleasure that the Group was instrumental in GTBank’s strategy to adopt a holding company structure, while offering the mutual funds and pensions customers a more extensive service platform.
“We are pleased that our former subsidiary businesses will become part of our previous parent company group and we are confident our former customers will continue to enjoy excellent services after the transfer to GTCO, which is based on a company with a common heritage built on professionalism, service excellence and innovation. Upon completion of the transaction, Investment One Financial Services Group will continue to offer investment management, investment banking, and robust digital services to its customers, while pursuing the next phase of our strategy to expand our business operations internationally”.
