Thursday 10th October 2019
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ASB Bank says it has sold its investment administration and custody business Aegis to MMC, a specialist outsourcing and investment administration business based in Auckland, for an undisclosed sum.
The Commonwealth Bank of Australia-owned bank had said in May that it was considering selling Aegis, a firm started by former sister company Sovereign in 1996 which administers about $15.2 billion of local and offshore investments on behalf of banks, brokers, trustee companies and fund managers.
ASB's private banking executive general manager, Adam Boyd, says the strategic review of Aegis provided an opportunity to gauge the best options for its continued success.
"Aegis is a good business which requires continued investment and strategic focus to ensure its customers continue to receive excellent levels of service in the future," Boyd says in a statement.
"As part of this review, we came to understand that Aegis would be best placed to grow and serve the interests of its customers under a new owner with a specialised focus," he says.
"Essential to the success of Aegis is its people and that has been a key consideration with MMC committed to investing for long-term success and committing to offer employment to all Aegis employees."
ASB will continue to use the Aegis platform.
MMC, which is 49.5 percent owned by Pencarrow, has 28 clients and $58 billion in funds under administration at Sept. 30, according to its website.
Those clients read like a who's who of the New Zealand financial sector, ranging from BT, Bank of New Zealand to Devon Funds Management, Milford Asset Management and Mint Asset Management and broking firms Craigs Investment Partners and Forsyth Barr.
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