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Equity Trustees agrees to buy the responsible entity for Platinum funds

Australia’s Equity Trustees signed a conditional agreement to acquire all shares in Platinum Investment Management from an L1 Group subsidiary. The deal transfers ownership of the responsible entity serving Platinum funds. Subject to regulatory conditions, the role initially stays with the existing company before moving to another licensed EQT entity. The company said investment management would remain with L1 Group managers and portfolio strategies were not expected to change.

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Conditional agreement covers all Platinum shares

EQT Holdings, the holding company of Australian trustee and responsible-entity services provider Equity Trustees, signed a conditional agreement to acquire all shares in Platinum Investment Management. The seller, Platinum Asset, is a subsidiary of investment-management group L1 Group. Completion is subject to regulatory requirements and customary conditions precedent.[1], [2]

EQT said the purchase would be made for nominal consideration. Platinum Investment Management acts as responsible entity for listed and unlisted Platinum-branded managed funds. That function is described separately from the funds’ investment-management arrangements.[1]

Responsible-entity role is planned for a phased transfer

After completion, Platinum Investment Management is to join the EQT group and initially continue as responsible entity for the relevant funds. A later transfer of that role to another licensed EQT company requires the necessary regulatory approvals. The funds include the Platinum International Fund Complex ETF and Platinum Asia Fund Complex ETF; an ETF is an exchange-traded fund.[1]

Investment management remains with L1 Group

EQT said investment management would remain with the relevant L1 Group managers. The company said it did not expect the funds’ investment strategies or day-to-day portfolio management to change. Relevant investors are to receive notice before changes take effect. EQT managing director and chief executive Mick O’Brien said the agreement expanded the company’s responsible-entity services and its existing relationship with L1 Group.[1]

References

  1. News sourceEquity TrusteesEquity Trustees agrees to acquire responsible entity for Platinum funds↩1↩2↩3↩4
  2. News sourceCapital BriefEquity Trustees agrees to buy the responsible entity for Platinum funds↩
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