Goldman may exit Australian equities, fixed income: source
SYDNEY – Goldman Sachs is considering the sale of its Australian equities and fixed income businesses, according to a source familiar with the matter, as it looks to exit one of the country’s most intensely competitive markets.
The Wall Street bank, which also operates investment banking and corporate advisory businesses in Australia, is conducting a strategic review of its Australian asset management business but has not made a decision on the sale, the source told Reuters on Wednesday on condition of anonymity as the discussions were private.
A Goldman Sachs spokeswoman declined to comment.
The sale would come after Swiss bank UBS (UBSG.S) offloaded its private bank in Australia last year following a review of its underperforming businesses.
Goldman’s Australian equities funds have total assets under management of A$9 billion ($6.56 billion).
Unlike the banking industry, which is dominated by four big lenders, Australia’s over A$2.6 trillion wealth management industry is alive with competition from new boutique fund managers with relatively low cost bases.
The A$1.7 trillion pension industry is setting up in-house teams to manage funds in another challenge to big investment banks.
Options being considered by Goldman include a sale to a third party or a management buyout, with Australian equities team head Dion Hershan and associates setting up a boutique, the source added.
Even after the sale, Goldman would continue to sell global products to its institutional clients, the source added. -Reuters