RICHMOND, Va., Oct. 23 /PRNewswire-FirstCall/ -- Genworth Financial, Inc.
(NYSE: GNW) today completed its previously announced acquisition of AssetMark
Investment Services, Inc. AssetMark is a leading provider of open
architecture asset management solutions to independent financial advisors,
with approximately $9 billion in assets under management.
Under terms of the agreement, 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," said 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, founded in 1996, is known for its open architecture investment
solutions. Its web-based technology allows independent financial
professionals to choose from a variety of strategies in designing an asset
allocation program and then gives them wide 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 heavily 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 advisors
the solutions they need to deliver the best investment programs to their
individual investor clients in the decades to come," said Ronald D. 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," said Cordes. "In addition, the meteoric growth and
development of many overseas economies, and the burgeoning ETF market pose new
choices and challenges for independent advisors."
"Clearly, our consumers want to be in the forefront of the investing
landscape and take advantage of new opportunities," said Gurinder S.
Ahluwalia, vice chairman of the newly combined asset management unit. "We will
continue working closely with advisors and invest in the technology and
research needed to bring them the next generation products and solutions that
assure their success."
"I believe the combination of Genworth Financial Asset Management and
AssetMark is a tremendous win for advisors and their clients," said Peter M.
Burton, partner of Walnut Creek, CA-based Burton Enright Group. "Working with
forward-looking organizations is critical to the future growth of our firm.
The innovative, solutions-oriented approach of Genworth and AssetMark ensures that they will leverage their strengths to offer investments and services that
best serve our clients' wealth management needs."
The AssetMark and Genworth Financial Asset Management combination creates
a unit with approximately $13 billion in assets under management and more than
4,000 independent advisor relationships.
About Genworth Financial
Genworth Financial, Inc. (NYSE: GNW) is a leading insurance holding
company, serving the lifestyle protection, retirement income, investment and
mortgage insurance needs of more than 15 million customers, with operations in
24 countries. For more information, visit http://www.genworth.com.
SOURCE Genworth Financial, Inc.
CONTACT: Investors, Alicia Charity, +1-804-662-2248,
Media, Tom Topinka, +1-804-662-2444,
both of Genworth Financial, Inc.