Iress has completed the sale of its managed funds administration (MFA) business to SS&C Technologies for $52 million.
Iress said it will use the proceeds of the deal, as outlined in August, to retire debt.
It had acquired the MFA business, one of the country’s largest third-party fund registries with around $900 billion in managed assets across over 1,400 funds, four custodians and 69 fund managers, as part of the OneVue purchase in November 2020.
Following completion, Iress will continue to provide transitional services to the MFA business for a period of 24 months, to assist in the transition to SS&C’s ownership.
As a result of the deal, John Harris, CEO of managed portfolio, and Simon New, chief executive of the firm’s UK business, will depart the firm with Harry Mitchell taking on responsibility for the UK as well as his existing role as group executive for wealth management.
Harris had joined in 2015 as its chief financial officer and was appointed as managed portfolio CEO in July 2023.
The CFO role was taken over by Cameron Williamson, who joined Iress from Pendal.
Now that the sale of the MFA business is complete, Iress said it will be focusing on the sale of its platform business, and Williamson has been appointed to take responsibility for this divestment.
Marcus Price, Iress chief executive, said: “In April, we outlined our plans for our managed portfolio of non-strategic assets. Our approach has been to set these businesses up for success and identify opportunities to realise value and a return of capital. Having now successfully completed the sale of MFA and launched the sale of our platforms business, we are now taking steps to accelerate our managed portfolio strategy to realise further value for shareholders from these assets.
“Iress also announces management changes to accelerate its managed portfolio strategy. Harry Mitchell will assume an expanded remit as group executive for the UK in addition to his existing responsibilities overseeing ANZ Wealth, while chief financial officer Cameron Williamson will take responsibility for managing the divestment of the Platforms business and disentanglement and separation of our South Africa and Canadian businesses.
“As a result of these changes to the composition of the managed portfolio, John Harris and Simon New will be leaving Iress. On behalf of the board and management team, I’d like to thank John and Simon for their many years of service to Iress. We wish them both well for the future.”
The various moves are part of Iress’ transformation strategy, announced earlier this year, where it intends to lean into its core software offerings including reinvestment in advice technology, expanding its connectivity capabilities in wealth and trading and exploring opportunities offered by artificial intelligence.
“Our analysis has confirmed that the core of the Iress business is incredibly attractive and exceptionally positioned at the centre of a thriving Australian wealth and trading ecosystem,” Price said earlier this year.
