News round-up

AXA appoints new Aussie manager; Marac-led bank could get investment grade rating

Monday, June 7th 2010, 5:00AM

AXA appoints new Aussie manager
AXA Global Investors has appointed Schroders as its Australian equities manager, replacing MIR Investment Management.

Schroders is a global asset management company with A$277 billion in funds under management.

"Schroders has a strong track record of performance and our analysis shows this is not restricted to particular investment environments, nor is this simply the result of a perennial overweight to resources, as has been the case for some Australian managers," AXA head of investment strategy Kieth Poore said.

"Their approach to risk management also sets them apart."

Marac-led bank could get investment grade rating
The proposed merger by Pyne Gould Corp., Canterbury Building Society and Southern Cross Building Society could achieve an investment grade credit rating and will likely attract more partners, according to ratings agency Standard & Poor's.

S&P director of financial institutions ratings, Peter Sikora, told a business audience in Wellington that the proposed merger "has the potential to be investment grade" and will probably attract more partners into the venture.

"It's going to be interesting to see the company structure," Sikora said. "It could be over $3 billion pretty quickly."

The three firms have signed a memorandum of understanding to investigate merging the two building societies, which would then be acquired by PGC's Marac unit, with an ultimate goal of applying for a banking licence by the middle of next year, creating a lender with $2.2 billion of assets.

« South Canterbury's cash drive pushing up all rates

KiwiSaver mismatch a 'huge challenge' for advisers »

Special Offers