Macquarie expands US funds management

Macquarie Investment Management has purchased the mutual fund assets of a 145-year-old American financial services organisation.

Foresters Investment Management Company which acts as the investment adviser of the First Investors funds entered into a definitive agreement with Macquarie IM on April 9.

The move will see Macquarie IM add roughly US $12.3 billion in assets under management to its Delaware Funds business.

The transaction is expected to complete between October and December.

Macquarie IM will also manage a portion of Foresters' general account supporting its life insurance business. It will also support advisors of a third-party Cetera Financial Group which is looking to buy select assets of the US brokerage and advisory business of Foresters Financial Services.

Shawn Lytle, global head of Macquarie Investment Management and president of Delaware Funds by Macquarie said the First Investors funds business aligns with Macquarie's mission to provide clients with investment capabilities across multiple strategies.

"We look forward to serving our new investors by delivering strong investment performance along with a broad and deep range of strategies across asset classes. We are delighted that Foresters has also selected us as manager of a portion of the Foresters general account."

Macquarie bought the Delaware Investments business about 10 years ago, when the current chief executive Shemara Wikramanyake was the global head of Macquarie Funds Group.

The firm was founded in 1929 and Macquarie paid $516 million to acquire its $150 billion in assets under management from Lincoln Group as it strengthened its North American footprint.

Foresters Financial president and chief executive officer Jim Boyle said: "In seeking a firm to acquire and manage our mutual fund assets for US investors, Macquarie Investment Management stood out as a leader that would be able to support our clients with its global platform and its commitment to investment excellence."

"The Delaware Funds by Macquarie stand for high conviction, long-term strategies, and we are confident we've found the right partner as we exit this area of our business."

Read more: USMacquarie Investment ManagementMacquarie IMDelaware FundsFirst InvestorsForesters Financial ServicesForesters Investment Management CompanyCetera Financial GroupDelaware InvestmentsJim BoyleLincoln GroupMacquarie Funds GroupShawn LytleShemara Wikramanyake
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