Ann: AMP completes GEFI sale, page-4

On the 8th July 2021, Macquarie stated:

"AMP’s GEFI business currently manages approximately $A60 billion in assets under management (AuM) for AMP Australia as well as external institutional, retail, and direct clients."

and further:

"The transaction consideration values GEFI at up to $A185 million, comprising a base payment of up to $A110 million in cash and a cash earn-out of up to $A75 million payable after the second anniversary of transaction completion. Final terms are subject to meeting revenue targets. The transaction is expected to close in the first quarter of 2022, subject to customary closing conditions."

Today, we learnt that 47bn AUM changed managers, and the payment is 63m; that is 22% less AUM and 43% less cash payment.

They kept the original timeline - which is commendable while everything else is not as expected. And yet, they keep talking about the 75m earnouts still to come. If they don't downgrade them now, then they will in the near term.

Unsure, who should be happy here. AMP getting rid of a shrinking venture at a bargain price, or MAM acquiring a venture in need of a turnaround.

22% less in AUM cannot be ascribed to changes is market value, must be outflows. In terms of outflows, they are probably up there with Magellan and Platinum - my ignorant guess.

All my own speculation.