AMP completes GEFI sale to Macquarie Asset Management
AMP has announced the successful completion of the sale of its Global Equities and Fixed Income (GEFI) business to Macquarie Asset Management (MAM), part of Macquarie Group.
Plans to sell AMP’s GEFI business to MAM were announced in July last year.
Shawn Johnson, AMP Capital chief executive, said: “The completion of the GEFI transaction is a key milestone in Collimate Capital’s separation from AMP and preparation for demerger.
“Our teams have been actively working to ensure a smooth transition of funds and clients and we’re confident that MAM, and our talented teams who are transferring, will deliver great outcomes for them.”
As part of the sale, assets under management (AUM) of around $47 billion would transfer from AMP Capital to MAM, subject to unitholder approvals while AMP would receive a net completion amount of approximately $63 million in cash from MAM.
The reduction from the total potential proceeds reflected reductions in AUM and client pricing changes since the sale agreement.
AMP remained eligible for a further cash earn-out up to $75 million payable after the second anniversary of transaction completion, subject to certain conditions including revenue targets. The amount remained uncertain with the retention of AUM being the main driver.
Recommended for you
Private investment opportunities are moving up on the list of what investors want from their financial advisers, according to Natixis IM, and over half of firms say they are offering them more strategies.
Two asset managers have each expanded their product suite with the launch of new global equity funds for Australian investors.
Perpetual has confirmed it is in exclusive talks with global investment company KKR regarding an acquisition of its corporate trust and wealth management businesses.
Platinum Asset Management has put its two closed-end funds under strategic review in a bid to reduce the share price discount to pre-tax NTA and maximise shareholder value.