Merger creates new Australian manager

In a merger that brings together the different capabilities of two global companies, Merrill Lynch Investment Managers will now operate across both the retail and institutional markets as Blackrock Investment Management Australia.

The newly-formed asset management business is the result of a joint venture between the Australian investment manager and global company Blackrock, which was launched in New York in 1988 as a global fixed income manager.

Blackrock head of distribution in Australia Damien Frawley said the partnership combined each company’s individual focus, resulting in a perfect fit between the two.

“The real strength in Merrill Lynch’s business historically has been in retail, particularly in Europe and the US, and Blackrock’s heritage has been institutionally focused — that’s why it’s such a good fit,” he explained.

“Culturally, the two businesses were very close, and when you look at the capabilities that both organisations had in their two parts, Blackrock was very strong in fixed income and Merrill Lynch was very strong in equities.”

Frawley said the plan for the new business was to encourage its growth in Australia by leveraging off Blackrock’s global reach, adding that its primary focus was to provide its clients with solutions.

“At the end of the day I believe we need to understand what the client’s issues are, and we then need to develop solutions for those issues,” he said.

“We are here to provide solutions for clients — we are not just here to provide products.

“My biggest challenge here is to make sure the business grows and that we also become integrated into what is now a very strong global business.”