The 14 index mandates within the former ANZ pensions and investments business, which form the OneAnswer index funds as well as the Smart Choice and OnePath diversified funds, will transfer to Invesco by early June.
The move follows Vanguard’s decision to stop managing index investments for other financial institutions in Australia.
IOOF deputy chief investment officer and head of equities, Stanley Yeo, led the decision.
“Invesco was selected based on its high aggregate score across the following criteria: portfolio construction, implementation and risk management, business management, smart beta capabilities and ESG credentials,” Mr Yeo said.
“Further, Invesco has the necessary skill, experience, resources and scale to deliver close tracking of indices. The scale of Invesco’s operations provides it with significant resources relative to smaller competitors.”
Invesco manages more than $388 billion through its indexing business, which extends across equities, fixed income and alternatives. The team has around 140 index management specialists.
Invesco senior managing director and head of Asia Pacific, Andrew Lo, added the partnership will deliver his company’s offerings to IOOF’s national adviser network and client base.
After the MLC acquisition wraps up, IOOF will become Australia’s largest retail wealth manager with more than 2 million clients.
“We are proud to work with IOOF in providing this broad range of compelling investment offerings to Australian investors and this agreement marks a major milestone for Invesco’s Australian business,” Mr Lo said.
