UBS buys funds management arm of ING
(1 July 2011 – Australia) The asset management arm of investment bank UBS has signed off a on a deal to buy the funds management arm of ING Australia, which has A$34 billion under arrangement.
Combined with UBS's own A$14 million under management, the investment bank will now become one of the top 10 funds players in the Australian market, a status likely to see it generate fresh mandates.
UBS Asset Management head Ben Heap said it was a chance for a significant leap forward.
'This allows us to significantly increase our scale. It fundamentally moves us to where we think we should be and that is a top-tier fund manager.'
Following the deal, UBS will have more than A$48 billion under management across several asset classes.
It will emerge as the ninth-biggest equities fund manager in Australia, with some A$12 billion in funds under management. Critically, UBS will become the second-biggest fixed-interest manager, with A$14 billion invested.
Most of the funds now managed by ING are on behalf of ANZ's wealth management business, OnePath. ANZ, the only big banking wealth manager that does not operate its own captive funds management business, signalled its intention to work with UBS's asset management arm after the acquisition.
UBS Asset Management head Ben Heap said it was a chance for a significant leap forward.
'This allows us to significantly increase our scale. It fundamentally moves us to where we think we should be and that is a top-tier fund manager.'
Following the deal, UBS will have more than A$48 billion under management across several asset classes.
It will emerge as the ninth-biggest equities fund manager in Australia, with some A$12 billion in funds under management. Critically, UBS will become the second-biggest fixed-interest manager, with A$14 billion invested.
Most of the funds now managed by ING are on behalf of ANZ's wealth management business, OnePath. ANZ, the only big banking wealth manager that does not operate its own captive funds management business, signalled its intention to work with UBS's asset management arm after the acquisition.
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