(21 March 2005 – Australia) Financial services company Challenger has inked a deal with HSBC to buy the bank’s funds management business for A$21.9 million.Challenger said the purchase was in line with its strategy to grow organically and via small “bolt on” acquisitions.
It said the acquisition would provide a cost effective opportunity to build more scale in the company’s wealth management business and it would also diversify Challenger’s revenue streams.
HSBC Asset Management has about A$3.5 billion in funds under management in wholesale and retail funds across a range of asset classes. Challenger said the company’s key asset managers would continue to operate out of Melbourne.
PricewaterhouseCoopers and Mallesons Stephen Jacques were advisors on the transaction.
Ratings agency Standard & Poor’s has placed a number of HSBC’s ASSIRT funds on hold pending completion of the deal.