Treasury Group sells Asian equities business

funds-management/australian-securities-exchange/chief-investment-officer/chief-executive/retail-investors/

21 October 2013
| By Staff |
image
image
expand image

Treasury Group (TRG) will sell its loan assets and more than 40 per cent of the equity in Treasury Asia Asset Management (TAAM) to Japanese-based Nikko Asset Management (NikkoAM).

The sale will also result in the transfer of the eight-member TAAM investment, founded and headed by Peter Sartori, to NikkoAM with the sale of the 43.96 per cent equity holding based on the book value of TRG's investment in TAAM as at 31 October 2013.

The sale was flagged by TRG in its 2013 full year results presentation and its annual report in which the group stated that it was reviewing the role of TAAM after a reduction in funds under management impacted the business's financial performance.

In making the announcement to the Australian Securities Exchange, TRG stated that it would recover the value of all invested capital and did not expect to record any abnormal gains or losses in relation to the price received. TRG also stated the sale should be completed before mid-November subject to the satisfaction of a number of conditions.

TRG chair Mike Fitzpatrick said while the group has supported TAAM for the past eight years, the Asian market had been volatile "and funds have struggled to support managers with an Asian focus, irrespective of performance".

TAAM chief investment officer Peter Sartori said its sectoral coverage approach would add to the geographic and thematic focus in use by Nikko AM. The chief executive of Nikko AM, Charles Beazley, said TAAM would bring sophisticated Asian equity strategies which would be offered to institutional and retail investors.

The purchase is not the first entrance into the Australia market for NikkoAM, which acquired Tyndall Asset Management in 2011.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

1 month 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months ago

Entireti has unveiled the new name for the AMP financial advice businesses that it acquired last year....

4 weeks ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

2 weeks 6 days ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

1 week 5 days ago

TOP PERFORMING FUNDS