Staff of Reuters 2 minutes Reuters (Reuters) – As the troubled wealth manager shrinks ahead of a spin-off, AMP Ltd will sell its global equities and fixed income (GEFI) division to Macquarie Group’s asset management arm, the two businesses announced on Thursday. The news comes after AMP, Australia’s most well-known retirement savings manager, opted in April to spin off AMP Capital’s private markets company, which includes GEFI, after attempting to sell it to Ares Management Corp. AMP shares surged as much as 1.8 percent on Thursday, beating other financial businesses and the overall market, after falling about 30% this year. GEFI, which manages roughly A$60 billion in assets, will receive up to A$185 million ($138 million) from Macquarie Asset Management. The Macquarie arm’s assets would climb to A$720 billion once finished, the companies said in separate announcements. AMP has begun on a makeover that included the selling of non-core businesses in the goal of becoming a simpler outfit following three years of crises. After a harsh public inquiry into the finance sector in 2018, it was found that the 172-year-old corporation had inappropriately levied fees and attempted to mislead regulators. Since then, many top executives have left, and policyholders have been withdrawing their monies. “Our analysis of the GEFI business last year revealed that it had outstanding investment capabilities and performance, but it required greater size and a broader distribution reach to compete effectively,” said James Georgeson, interim chief executive officer of AMP Capital. AMP said it is evaluating the expenditures that may be incurred as a result of the separation, which is expected to be completed in the first quarter of 2022. (1 Australian dollar = 1.34 dollars) Nikhil Kurian Nainan contributed reporting from Bengaluru, while Maju Samuel and Sherry Jacob-Phillips edited the piece./n
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