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.
AUTHOR
Liam Cormican
Recommended for you
Amid a growing appetite for alternatives, investment executives have shared questions advisers should consider when selecting a private markets product compared to their listed counterparts.
Chief executive Maria Lykouras is set to exit JBWere as the bank confirms it is “evolving” its operations for high-net-worth clients.
Bennelong Funds Management chief executive John Burke has told Money Management that the firm is seeking to invest in boutiques in two specific asset classes as it identifies gaps in its product range.
Responsible investment performance concerns have lessened as the market hits $1.6 trillion in AUM, according to RIAA’s annual report, but greenwashing fears among asset managers are on the rise.
