Somers is a financial services investment company with strong assets and minimal leverage
Somers Limited (“Somers”) was established in 2012 and is listed on the Mezzanine Market of the Bermuda Stock Exchange as a financial services investment holding company, with investments principally in Australia, Bermuda and the United Kingdom. Somers' core investments are primarily in the banking, asset financing, fintech and wealth management sectors. Somers has shareholders’ funds as at 30 September, 2023 of approximately £271 million, and it invests in listed and unlisted companies, with both minority and controlling shareholdings.
Somers is managed by ICM Limited (“ICM”), a Bermuda based global fund manager and corporate finance adviser which currently manages approximately US$1.8 billion in funds directly, and is responsible indirectly for a further US$23.2 billion of assets in subsidiary investments (as at 31 December, 2023). ICM is a long term investor that focuses on having a deep understanding of the business fundamentals of each investment and its environment versus its economic value.
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Somers’ investment objective is to provide long-term total return to its shareholders. To date we have invested in banking, wealth management, fintech and asset financing, and are focused on developed markets.
Somers is a mid to long-term investor with low levels of leverage; therefore, the level of new investments made by Somers is expected to correlate with new capital growth. Somers’ primary objective is to deliver superior per share total return through both capital and income, which in turn can be expected to be reflected in share price growth. To achieve this, Somers seeks to invest in undervalued companies within the financial services sector and has the flexibility to make investments in a range of financial-related sectors and markets. Somers will identify and invest in opportunities where the underlying value is not reflected in the market or purchase price. The perceived undervaluation may arise from a variance of factors including the limited number of potential buyers, the paucity of bank lending to smaller financial services companies and the abundant supply of financial services companies for sale as banks continue to deleverage in response to the global credit crisis.
Somers will generally aim to achieve a control position but is equally comfortable with a minority position if the purchase price is sufficiently attractive or the investment instrument offers a degree of protection. Somers aims to maximise value for shareholders by holding a reasonably concentrated portfolio of investments and maintaining a prudent level of gearing. These investments can be both unlisted and listed. Besides looking for “bolt-on” opportunities, Somers hopes to extract synergistic benefits from the investee companies on both costs and revenue as investee companies are encouraged to collaborate with each other, share resources where appropriate and think smarter.
Somers expects to be supportive of its investee companies, maintain regular dialogue with the management, have strategic input and, where appropriate, provide additional capital to ensure that the companies can develop and grow.
Somers operates a dividend reinvestment policy which enables shareholders to elect to take their dividends in shares in lieu of cash. This enables shareholders to increase their holding in the company without having to pay stamp duty or dealing costs.
Its shares are traded on the Mezzanine Market of the Bermuda Stock Exchange, under the ticker code SOMS.BH.
ICM is an investment group built on a philosophy of value creation, vision and innovation. ICM continually looks for compelling investment opportunities, and it thrives on market imperfections based on years of experience in investments and investment processes. ICM actively engages with its investee companies on material Environmental, Social, and Governance (“ESG”) issues with the intention of creating a positive impact on its results and the groups ICM work with. Active monitoring of investee companies is an essential part of ICM’s responsible investment strategy and given sustainability is an important part of its investment philosophy, ESG factors are integrated into the investment processes.
ICM is a signatory to the UN-supported Principles of Responsible Investment, which encompasses a voluntary set of six principles to incorporate ESG into investment practice.
Find out more about ICM's responsible investment approach here.