Somers Limited

Somers Limited is an investment holding company based in Hamilton, Bermuda.^[1] Its shares are traded on the Bermuda Stock Exchange.^[2]

Somers Limited is a financial services investment platform, and the company targets investments primarily in the banking, wealth management and asset financing sectors. Somers Limited has contracted with an external investment manager, ICM Limited to manage its investments.

Somers' investments are predominantly in Bermuda, UK and Australia with these three jurisdictions together accounting for over 97% of total investments. Somers' gross assets at March 31, 2018 was US$402 million.^[3]

Portfolio Summary

As at March 31, 2018 Somers Limited (Somers) has a relatively concentrated portfolio with investments which are primarily focused on the financial services sector. Geographically, Bermuda accounts for 32.7% of the portfolio (2016: 40.1%), while the UK 29.2% (2016: 29.6%) and Australia 35.7% (2016: 28.0%), make up most of the balance. The Somers' portfolio consists of the following:^[4]

Homeloans Limited (merged with RESIMAC Limited in 2016) is a leading non-bank lending and multi-channel distribution business in Australia and New Zealand with a managed mortgage loan portfolio of A$11.1 billion as at March 31, 2018.^[5] Its primary activities are as mortgage manager, mortgage broker and in addition, originating, servicing and securitising mortgage assets. Its shares are listed on the Australian Stock Exchange and Somers owns approximately 62% of Homeloans with the balance owned by institutional and retail investors.

Bermuda Commercial Bank Limited is one of Bermuda’s four licensed banks and remains one of Somers’ largest investments. It accounts for 25.8% of the portfolio at March, 2018.^[6]

Waverton Investment Management Limited is a London-based specialist investment manager with £5.3 billion AUM^[7] which accounts for 23.1% of Somers’ portfolio (2016: 23.4%). Somers has a 62.5% holding in Waverton Investment Management Limited.

PCF Group (formerly Private and Commercial Finance Group) is a long established AIM-listed finance group that has recently been awarded a UK Bank Deposit Taking Licence. PCF Group's bank is PCF Bank, which offers both specialist bank providing vehicle and asset finance to consumers and businesses. Somers has a 65.7% holding in PCF Group.

MJ Hudson is a UK based specialist law firm and asset management services provider. MJ Hudson was founded in 2010 as a law firm, and it is now a multi-services and infrastructure business, a one-stop outsourcer for asset managers and investors encompassing legal, operating and regulatory, fiduciary, administration and reporting, and investor relations services.

Stockdale Securities Limited is a London based corporate and institutional stockbroking group in which Somers Limited has a 75% interest.

Merrion Capital is an independent Irish financial services firm in which Somers Limited has a 21.8% equity interest. Merrion has a number of revenue streams including Private Clients, Retail Asset Management, Fixed Income, Corporate Finance and Merrion Investment Management (“MIM”). The two main business lines are MIM (institutional asset management) and Private Clients/Stockbroking.

West Hamilton Holdings Limited is a Bermuda Stock Exchange listed property investment and management company with property assets in Bermuda and in which Somers has a 57.1% equity interest.

Other Investments: Somers Limited has a number of other smaller investments which are a mixture of both unlisted and listed holdings. The total value of these investments as at March 31, 2018, was $12 million (2016: $8.7 million).

As at March 31, 2018, Somers has funds directly and indirectly under management of over US$17.5 billion.^[8]

History

Somers Limited was founded in 2012 as Bermuda National Limited^[1][9] when Bermuda Commercial Bank Limited, founded in 1969, created a new holding company.

In 2013, Somers made acquisitions including:

• Private and Commercial Finance Group plc, and
• Waverton Investment Management, formerly known as J. O. Hambro Investment Management from Credit Suisse Bank^[9]

In the 2014 financial year, Somers' key acquisitions included:

• An investment in Ascot Lloyd Holdings Limited bringing Somers' total potential economic interest to 32.5%
• An increased shareholding in Westhouse Holdings plc to 84.6%
• A 6.6% interest in Merrion Capital^[10]
• A 23.8% shareholding in Incol Limited (“Incol”).^[11] Incol is a funding platform for financial institutions

In the 2015 financial year, Somers' key transactions included:

• Sale of holding of shares and convertible loan notes in Private and Commercial Finance Group plc to its wholly owned subsidiary, Bermuda Commercial Bank Limited^[12]
• Acquisition of an additional 1,222,949 shares in West Hamilton Holdings Limited from BCB bringing Somers’ total holdings to 57.1%

In the 2016 financial year, Somers' key transactions included:

• Acquisition of a 79% shareholding in RESIMAC Limited (subsequently merged with ASX listed Homeloans Limited resulting in a 59% holding in Homeloans^[13]), with a combined loan portfolio at the time of A$13 billion
• In September 2016, Somers acquired a 13% economic interest in MJ Hudson^[14]

In the 2017 financial year, Somers' key transactions included:

• RESIMAC Limited merged with Homeloans Limited in October 2016, resulting in a 59% shareholding^[15]
• Sale of holding of all shares in Ascot Lloyd Holdings Limited, to CPL Bidco Limited^[16]

Board of directors

• Warren McLeland - Chairman of Somers Limited, a Non-Executive Director of Homeloans Limited^[17] and UIL Ltd,^[18] and former Senior Managing Director with Chase Manhattan Bank (now JP Morgan Chase)
• David Morgan - Deputy Chairman of Bermuda Commercial Bank Limited^[19], Non-Executive Director of Waverton Investment Management Limited,^[20] PCF Group PLC^[21] and former CEO of Standard Chartered Bank, UK and Europe
• Charles Jillings - Chief Executive of ICM Investment Research Limited and ICM Investment Management Limited^[22], and Director of ICM Limited^[22], Waverton Investment Management Limited^[23], and Merrion Capital^[24]
• Duncan Saville - Chairman of ICM Limited,^[22] and a Non-Executive Director of Homeloans Limited^[25] and West Hamilton Holdings^[26]
• Alasdair Younie - Director of ICM Limited,^[22] and a Non-Executive Director of Ascendant Group Limited,^[27] Bermuda Commercial Bank Limited,^[19] West Hamilton Holdings Limited^[26] and One Communications Ltd (nee KeyTech Limited)^[28]
• Peter Durhager - Chairman of Ascendant Group Ltd^[29] and the Bermuda Community Foundation^[30], Non-Executive Director of Harrington Re^[31] and F&G Re, and former President of Renaissance Services Ltd

Sponsorship

Somers Limited announced in 2014 a four-year corporate sponsorship of the Bermuda Olympic Association, covering the next Olympiad which includes the 2016 Summer Olympics in Rio, and the 2018 Winter Olympics in Pyeongchang. As part of the partnership, the Bermuda Olympic Association introduced a youth education programme promoting wellness and involvement in sport.

References