– Yarra Capital Management becomes one of Australia’s largest independently owned Australian funds management businesses, with approximately $A20 billion of funds under management

– Nikko Asset Management and Yarra Capital Management enter into a partnership focussed on long-term growth, providing Nikko Asset Management with a 20% stake and board representation in the enlarged group and expanding Nikko Asset Management’s distribution capacity in Australia

Further to the announcement of 2 March 2021, Yarra Capital Management (Yarra) confirms that it has now completed the acquisition of Nikko Asset Management’s Australian business.

Under the terms of the agreement, Yarra has now assumed ownership of Nikko AM’s Australian subsidiary, Nikko AM Limited, and its associated entities. Yarra Capital Management is now one of Australia’s largest independently owned Australian funds management businesses, with approximately $A20 billion of funds under management^[1].

Nikko AM will continue to be an important partner in the future success of the combined business, through a 20% stake and board representation in the enlarged group. The mutually beneficial partnership enables Nikko AM’s global business to gain access to Yarra’s investment products, with Yarra assuming responsibility for the distribution of Nikko AM’s global suite of products in the Australian market. Importantly, all investment team personnel remain in place.

The top-level brand will be Yarra Capital Management, with no changes to Yarra’s existing products or entities. Nikko AM’s Australian fixed income business will be integrated into Yarra’s expanded fixed income team and rebranded under Yarra’s banner.

Nikko AM’s Australian equities business will see a return of the Tyndall Asset Management (Tyndall AM) brand, a process which we expect will be completed early in the second half of CY21. Tyndall AM will remain a separate franchise to Yarra’s style-neutral Australian equities business, with no crossover in investment management activity and no change to its value investment philosophy or process.

Commenting on behalf of Yarra, Garvin Louie, Interim Managing Director, said:

“We are delighted to have completed the acquisition of Nikko’s Australian business. The combination, which has received very strong support from internal and external stakeholder groups, enables us to strengthen our relationship with clients and provides the scale to support further investment in talent, research, leading technology and operational excellence to continue to serve our clients.”

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[1] As at 31 December 2020.