Richmond, Va. - Genworth Financial Inc. completed its acquisition of AssetMark Investment Services Inc. AssetMark is a Pleasant Hill, Calif.-based provider of open architecture asset management solutions to independent financial advisors, with approximately $9 billion in assets under management.Under terms of the agreement, Richmond, Va.-based Genworth paid $230 million for AssetMark and will make additional performance-based payments of up to $100 million over the next five years.
"The acquisition brings together two organizations that have been committed to serving financial intermediaries with innovative, high-quality products and services," says Pam Schutz, president and CEO of Genworth's Retirement Income and Investments business. "We believe this combination creates an organization that can leverage its experience and strengths and be the leader in offering investment and retirement income solutions that address the increasingly complex needs of financial advisors and their clients."
AssetMark's Web-based technology enables independent financial professionals to choose from a variety of strategies in designing an asset allocation program and then gives them latitude to select managers and products that fit the suggested investment program. Genworth Financial Asset Management has been growing its business with a focus on separately managed and unified managed accounts. It has invested in back-office operations and has created a centralized custodian platform for its users to streamline the administrative process.
"The opportunity exists with our combination to bring independent advisers the solutions they need to deliver the best investment programs to their individual investor clients in the decades to come," says Ronald Cordes, chairman of the new firm. "Given a constantly changing market environment and rapid innovation in investment products and strategies, we are deeply committed to continuing on our path of providing the top-flight investments that have been the hallmark of our business since its founding.
"It is now possible to make investment strategies available to financial intermediaries and their clients that had once only been the domain of institutional investors," says Cordes. "In addition, the meteoric growth and development of many overseas economies, and the burgeoning ETF market pose new choices and challenges for independent advisers."
"Clearly, our consumers want to be in the forefront of the investing landscape and take advantage of new opportunities," says Gurinder Ahluwalia, vice chairman of the newly combined asset management unit. "We will continue working closely with advisers and invest in the technology and research needed to bring them the next generation products and solutions that assure their success."
Source: PR Newswire
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