Vanguard Group Inc said on Wednesday it will close most of its business managing money for institutional investors and large pension funds in Australia and New Zealand, and focus on serving retail clients.
The U.S. investments giant, which has roughly AUS$164 billion in assets under management in Australia, will stop offering customised products called segregated mandated accounts to large institutional investors.The exit comes as Australia's pension funds, which make up the world's third-largest pool of pension assets, have moved towards managing a larger portion of their investments internally to lower costs.
It will work with existing SMA clients in Australia and New Zealand to ensure a smooth transition that is expected to take between 12 and 24 months, she added.Advertisement