Melbourne-based financial services company IOOF Holdings tapped Invesco to take over the management of more than A$23.1 billion ($17.9 billion) in passive strategies from Vanguard next month.
Earlier this year, Vanguard announced it would walk away from tens of billions of dollars of institutional, separate account mandates in the Asia-Pacific region to bring its business there in line with the firm's global focus on retail investors and their advisers.
An IOOF news release said 14 index allocations, available to investors as part of the company's OneAnswer index funds, as well as its Smart Choice and OnePath offerings, will transfer to Invesco by early June.
Invesco was selected after extensive due diligence based on its strengths in "portfolio construction, implementation and risk management, business management, smart beta capabilities and ESG credentials," Stanley Yeo, IOOF's deputy CIO and head of equities, said in the news release.
Meanwhile, Mr. Yeo noted that the scale of Invesco's operations — with a global indexing business of more than A$388 billion — provides the Atlanta-based money manager with "significant resources relative to smaller competitors."
Spokeswomen at Invesco and Vanguard couldn't immediately be reached for comment.