ASB says it has sold Aegis Limited, its investment administration and custody businesses, and Investment Custodial Services Limited to MMC in a confidential deal.
MMC is an Auckland-based specialist outsourced fund and investment administration business whose biggest shareholder is private equity group Pencarrow.
The sale comes after ASB announced a strategic review of its ownership of Aegis and Investment Custodial Services in May. It also follows ASB's failed attempt to sell Aegis to Pyne Gould Corporation subsidiary Perpetual Group in 2010.
“Aegis is a good business which requires continued investment and strategic management focus to ensure its customers continue to receive excellent levels of service in the future. As part of this review, we came to understand that Aegis would be best placed to grow and serve the interests of its customers under a new owner with a specialised focus," Adam Boyd, ASB’s executive general manager for private banking, wealth and insurance, said in a statement.
“Essential to the success of Aegis is its people, and that has been a key consideration with MMC committed to investing for long-term success, and committing to offer employment to all Aegis employees,” Boyd said.
The bank said details of the sale are confidential. However ASB did say it will continue to use the Aegis platform.
Aegis was established in 1996 by Sovereign Insurance and has been part of the ASB Group since 1998. Parent Commonwealth Bank of Australia sold Sovereign to AIA in 2017.