TheWestpac BankandRothschild Australia Asset Managementwill combine their funds management businesses to form a new organisation, following the announcement yesterday of Westpac’s acquisition of Rothschild Australia Asset Management’s business for $323 million in cash.
Key professionals from both organisations will lead the newly branded and independently managed organisation to be launched by the third quarter this year.
Rothschild Australia Asset Management’s chief executive Peter Martin will head up the organisation and will report to Westpac’s group executive business and consumer banking, David Clarke.
“We are excited to be part of this new organisation because of the additional growth options it provides and our ability to leverage off the strength of Westpac in this market,” Rothschild Australia Asset Management’s chief executive officer Peter Martin says.
He says the new venture will give Rothschild a greater range of wealth management products and services with which to service clients.
“In particular, initiatives under consideration include capital protected growth products and diversified fixed interest products,” Martin says.
Rothschild will continue to have offices in Sydney, Melbourne and Perth.
The new business will enable Westpac, which has 765 financial planners, to strengthen its distribution capacity by tapping into the 1000 independent financial advisers Rothschild already has a relationship with through its Premier Adviser Service.
“Westpac has organically built a very successful wealth management business. The combination of Westpac and Rothschild’s Australian wealth management businesses provides Westpac with a springboard for accelerated growth in this area,” Westpac’s chief executive officer David Morgan says.
Westpac will also gain access to Rothschild’s investment management team and its international strategic alliances with Putnam Investments and Grosvenor Capital Management.
