Up to 20 jobs may be axed following the shock Macquarie Asset Management (MAM NZ) decision to hand over the keys of its NZ outpost to Mercer.
Under the deal announced last week, Mercer will assume legal control of the MAM NZ funds with Macquarie remaining as an investment manager for at least some of the underlying assets.
It is understood only the local fixed income team of about five will remain in the MAM NZ business as it effectively withdraws as a licensed manager.
MAM NZ, formerly AMP Capital NZ, employs about 25 staff with some possibly shifting across to Mercer ahead of the expected legal completion next March.
In a note to clients last week, MAM NZ head, Rebekah Swan, said: “We believe this change will offer strategic benefits to clients in the funds, bringing together MAM’s strengths in global investment management and the strength of Mercer’s well-established New Zealand multi-manager platform. Mercer has a significant presence in New Zealand, with a team of 130 people.”
Macquarie purchased the Wellington-based manager as part of its A$63 million buyout of the AMP Capital global equity and fixed income (GEFI) business last year. In Australia, Macquarie bought only the GEFI assets while retaining the entire AMP Capital NZ operation, taking formal ownership in March this year.
MAM NZ had subsequently shifted the AMP Capital NZ product range of 23 underlying funds to the new entity as it geared up for growth with the backing of the wider Macquarie business.
At one point the second-largest fund manager in NZ, AMP Capital assets under management more than halved last year as sister firm, AMP Wealth NZ, ended a long-standing mandate worth about $10 billion at the time. AMP Wealth appointed BlackRock to manage most of its KiwiSaver and superannuation assets in passive funds.
According to the latest MAM NZ accounts, the firm managed about $2.7 billion across its fund range at the end of March this year compared to almost $10 billion at the same time in 2021.
The NZ cash and fixed income funds remain the largest in the MAM NZ fleet, reporting about $360 million and $340 million under management at the end of March compared to almost $2.2 billion and $2 billion, respectively, 12 months prior.
Meanwhile, in unrelated news last week Pensions & Investments (P&I) reported that Macquarie Asset Management chief, Ben Way, would relocate from Sydney to New York by year-end to spearhead the firm’s ambitious growth plans.
Macquarie manages over A$770 billion globally with about two-thirds in listed assets and the remainder in the fast-growing private markets sector.
Way told P&I that the US represented the “biggest business in terms of people and AUM, and also I think our biggest opportunity”.
“New York is the capital of asset management globally, so it will be great to be there”, Way told P&I. “…I can’t be asking my team to be doing things I don’t do myself.”
Macquarie has previously dabbled in the NZ funds management business, taking full ownership of the seminal investment boutique, Brook Asset Management, in 2009 before shuttering the firm in 2014. The Australian giant also retains a small stake in Hobson Wealth Management, the former Macquarie Equities NZ business acquired by Warren Couillault in 2016.
Mercer will pick up the MAM NZ business in a no-cash deal, according to sources, with Macquarie to sign an investment management agreement. The deal is subject to approval by MAM supervisor, Guardian Trust.
Neither Macquarie, Mercer nor MAM NZ were available for comment.