Challenger takes a look at AMP Capitalâs public markets
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Of all the options on the table heading into AMPâs portfolio review, the one we didnât expect was splitting up AMP Capital and partially selling a stake in part of it.
AMP investors are waiting to see whether the group can finalise its AMP Capital private markets transaction with Ares.Â
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Itâs a bit messy, but itâs happening.
AMP said it would retain ownership of AMP Capitalâs public markets business â equities, fixed income and the multi-asset-group, which is a combination of both.
However, it also flagged plans to find a buyer or new partner for its global equities and fixed income offerings, which were put into the same bucket and called âGEFIâ.
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The annuities and investment group recorded a 29 per cent year-on-year decline in net profit during the first half of the 2021 financial year, despite the funds management business more than tripling its net flows.
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Challenger has taken a significant step in terms of expanding into the term deposit market and therefore expanding its retirement income offering via the acquisition of MyLIfeMyFinance Limited from Catholic Super (now known as MyLifeMyMoney Suprannuation Fund).
Challenger announced the transaction to the Australian Securities Exchange (ASX) today declaring that the acquisition would see it holding an authorised deposit-taking institution license.
“The acquisition is highly strategic and provides Challenger the opportunity to significantly expand its secure retirement income offering,” the announcement said. “Following the acquisition, Challenger will hold an Australian Prudential Regulation Authority (APRA) authorised deposit-taking institution (ADI) licence, providing access to Australia’s $1 trillion term deposit market.”