Westpac has entered into an agreement to sell its Advance Asset Management business (Advance) to Mercer Australia.
In addition, it has entered into a heads of agreement to merge the BT Funds Management personal and corporate superannuation funds with Mercer Super Trust.
Advance is a multi-manager investment business which provides specialist funds management services and products, including for certain investment options available through BT Super’s personal and corporate superannuation funds. Advance had A$43.7 billion (US$31.3 billion) funds under management at the end of March 2022 and manages a number of products available through BT Panorama.
The merger is of BT’s personal and corporate superannuation funds which had total funds under administration of A$37.8 billion at the end of March 2022 and includes the Westpac employee default plan (Westpac Group Super Plan). BT employees who support these funds will be offered employment by Mercer as part of the agreement. The merger does not include superannuation held on Westpac’s BT Panorama and Asgard platforms.
The future merged fund will manage more than A$65 billion and help more than 850,000 Australians invest for, and support, their retirement.
Westpac Specialist Businesses Chief Executive Jason Yetton said: “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.”
The sale of Advance and the merger of the BT personal and corporate superannuation funds remain subject to certain conditions and regulatory approvals and are expected to be completed in the first half of 2023.
Mercer is a leader in superannuation backed by Marsh McLennan, one of the world’s leading professional services firms specialising in risk, strategy and people. It currently has more than A$500 billion in assets under management.