Aussie banking group Westpac has agreed to sell its Advance Asset Management business to Mercer Australia for an undisclosed sum.
Advance is a multi-manager investment business providing specialist funds management services and products.
As of the end of March 2022, Advance had A$43.7bn (£24.6bn, $30.9bn, €28.9bn) funds under management.
In other news, Westpac subsidiary BT Funds Management has agreed to merge its personal and corporate superannuation funds with Mercer Super Trust.
BT has A$37.8bn in funds under administration, as of the end of March 2022, which include the Westpac employee default plan.
Mercer will offer employment to BT staff who look after the funds following the merger.
The deal, however, does not include superannuation funds held on Westpac’s BT Panorama and Asgard platforms.
BT Trustee chair Gai McGrath said: “The trustee engaged broadly across the industry and after a robust and competitive process this merger will create a larger superannuation fund with the potential to deliver improved performance, lower fees, and broader member services.
“It also maintains continuity of knowledge and service for BT Super members.”
Westpac specialist businesses chief executive Jason Yetton added: “This is a further step in the simplification of Westpac and supports the group’s focus on banking in Australia and New Zealand. It also provides significant benefits for BT Super members, new opportunities for our people and redefines the landscape of superannuation in Australia.
“Since the formation of Westpac’s specialist businesses division around two years ago we have made significant headway on our portfolio simplification agenda, having announced eight business sales, of which five have now completed.”
Both deals are expected to complete in the first half of 2023.