Fund Company Update

Yarra Capital completes purchase of Nikko

The acquisition by Yarra Capital Management of Nikko Asset Management has been completed, creating a joint force worth around $20 billion. Yarra Capital will remain the brand, with Nikko’s fixed income business ending up in the Yarra arm, with the old Tyndall Asset Management brand to be brought back to life for the former Nikko Australian equities business. Tyndall is to remain a separate franchise from Yarra’s equities business.

Nikko will take a 20 per cent stake in the greater company with access to funds management products for international distribution, with Yarra Capital to distribute Nikko products locally.

Citigroup leaving Australian retail banking

Citigroup is leaving consumer banking in Australia and other markets after a huge strategic overhaul of its banking businesses. China, India, Indonesia, Korea, Malaysia, the Philippines, Poland, Russia, Taiwan, Thailand, Vietnam and Bahrain's Citi retail/consumer arms are also being disbanded. Institutional clients across all these markets will remain open, with a greater focus on its four major consumer banking businesses in Singapore, Hong Kong, United Arab Emirates and London.

EISS Super and TWUSUPER consider merging

A memorandum of understanding has been signed by EISS Super and TWUSUPER to look into merging. If it were to go ahead, the combined fund would have around 130,000 members and $12 billion in funds under management.