Somers is a financial services investment company with strong assets and minimal leverage
Somers Limited (“Somers”) was established in 2012 and is a Bermuda Stock Exchange listed 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, and wealth management sectors. Somers has shareholders’ funds of approximately US$625 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$2.7 billion in funds directly, and is responsible indirectly for a further US$22.1 billion of assets in subsidiary investments. 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.
Somers investments include:
- 64.4% shareholding in UK specialist bank PCF Group plc;
- 62.3% shareholding in Resimac Group Limited, a leading non-bank Australian financial institution with A$15.0 billion assets under management; and,
- 62.3% shareholding in Waverton Investment Management Limited, a UK wealth manager with £7.1 billion assets under management.
Somers’ investment objective is to provide long-term total return to its shareholders. To date we have invested in banking, wealth management 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 Bermuda Stock Exchange under the ticker code SOM.BH.
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