Wealth services provider AMP
(ASX:AMP) is set to sell its $60 billion global listed equities and global income fund to millionaire factory Macquarie Group
(ASX:MQG) for up to $185 million.
AMP’s Capital’s Global Equities and Fixed Income business (GEFI) manages $60 billion on behalf of institutional and retail clients.
The move will take Macquarie Asset Management’s assets under management to around $720 billion to power its foothold to be the country’s largest investment manager.
The deal consists of a payment from the millionaire's factory of $110 million in cash for the business and another $75 million two years later subject to “meeting certain conditions, including revenue targets”.
It comes after troubled AMP's decision to spin off the private markets business of AMP Capital in April to simplify its operations.
AMP acting chief James Georgeson said “in bringing together two well-known Australian investment businesses with strong track records, we’re pleased to deliver such a positive outcome for our clients, our GEFI teams and AMP shareholders. Our review of the GEFI business last year showed it had strong investment capabilities and performance but needed greater scale and broader distribution reach to compete effectively”.
Shares in AMP
(ASX:AMP) are trading 1.07 per cent higher at $1.13 while shares in Macquarie
(ASX:MQG) are trading 0.43 per cent higher at $157.13.
