Aberdeen moves for Deutsche Bank's Australian fund management business

23 March 2007

Aberdeen Asset Management is to buy a portion of Deutsche Bank's Australian fund management business for $119 million.

The Scottish global asset manager will acquire some of Deutsche's Australian Target Businesses that manage about $11.2 billion in assets, but which posted a loss of $3 million last year.

The interests are in fixed-income and equities sector and will boost the value of assets under Aberdeen's management to $13.7 billion.

Deutsche Asset Management's sale represents about a quarter of the $21.7 billion of assets it manages, with the bank now set to focus more strongly on global products, alternative investments and real estate.

Chum Darvall, Deutsche Australia and New Zealand chief executive, said: "This repositioning is entirely consistent with our stated goals of concentrating on high growth, high value and specialised products."

Aberdeen's move comes as more overseas asset managers look to capitalise on 20 per cent growth in retirement savings of $735 billion in the market.

In 2005, Aberdeen acquired London and Philadelphia-based asset management operations from Deutsche for $91.5 billion.

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