Clearstream enters Australian market with acquisition of Ausmaq Limited
Deutsche Börse Group’s post-trade services provider Clearstream is further expanding its offering in the investment funds space and enters the Australian market. The company has reached an agreement with National Australia Bank Limited (NAB) to acquire its Sydney-based specialist managed funds services business Ausmaq Limited. The transaction is expected to be completed in the second half of 2019, subject to customary closing conditions including regulatory approval.
The acquisition marks another step in Deutsche Börse’s Roadmap 2020 strategy. One of the key pillars of the strategy is external growth with a focused and disciplined approach in selected growth areas, one of which is investment funds. Australia ranks number one among the fund markets in Asia-Pacific and number four globally with regards to assets under management (AuM). Currently valued at 2 trillion Euros, the Australian market demonstrates steady AuM growth, underpinned by the requirement to make 9.5 per cent compulsory salary contributions to the superannuation industry.
International players active in the Australian market have looked to Clearstream to provide the same infrastructure service that it provides internationally to its clients and to handle the link from the Australian funds market back to the global markets. With this move, Clearstream does just this: the company will expand on the service offering currently available to Ausmaq customers to also provide Australian custodian banks, wrap platforms and wealth managers with access to its fully-automated global funds processing platform Vestima. In joining a global leader in funds processing, over time Ausmaq customers can look forward to benefitting from additional product reach with direct access to international funds and to alternative funds.
Bernard Tancré, Head of Investment Funds Services at Clearstream, said: “Ausmaq is a perfect fit for Clearstream’s strategy in the Asia-Pacific region. As an established provider of fund processing solutions, the acquisition allows us to broaden our fund service offering in Australia and to provide our international customers with integrated solutions for the domestic market.”
Ravi Subramaniam, Chief Executive Officer of Ausmaq, said: “Today’s announcement is the beginning of an exciting new chapter for Ausmaq. We’re thrilled to be joining an organisation of Clearstream’s calibre – a recognised global leader in post-trade services. Our clients can expect to receive the same exemplary service that they’ve become accustomed to over the years, with increases in the service offering to be introduced over time.”
The managed funds administrator Ausmaq will become a 100 per cent subsidiary of Clearstream. Currently, Ausmaq is a wholly-owned subsidiary of NAB.
Flagstaff Partners and Allen & Overy have acted as advisers for this transaction.
Learn more about Vestima:
As an international central securities depository (ICSD) headquartered in Luxembourg, Clearstream, which is part of Deutsche Börse Group, provides the post-trade infrastructure for the Eurobond market and services for securities from 57 domestic markets worldwide. With around 14 trillion Euros in assets under custody, Clearstream is one of the world’s largest settlement and custody firms for domestic and international securities. Alongside its highly automated mutual fund services, Clearstream provides clients with a “one-stop shop” solution for all fund types.
About Ausmaq Limited
Ausmaq Limited is a specialist managed funds services business that administers managed funds and term deposits for leading wrap platform providers and wealth managers in Australia. At present, over 1,400 managed funds are available on the Ausmaq platform, which processes approximately 350,000 managed fund transactions annually.