iFast unit enters business transfer agreement for transfer of Singapore mutual funds platform for S$3 million

WEALTH management platform iFast Corporation on Monday announced that its wholly-owned subsidiary, iFast Financial, has entered into a business transfer agreement with DWS Investments Singapore (DWS) for the transfer of its fund management business relating to its Singapore mutual funds platform, comprising seven authorised retail funds.

The purchase consideration for the transaction is about S$3 million, based on the fair value of the assets being acquired, said the company in a bourse filing. Currently, assets under management of the funds stand at some S$600 million.

As part of this transaction, iFast will also enter into sub-delegation agreements with DWS Investment GmbH and DWS Investments Hong Kong - the existing sub-managers of the seven funds, to continue with the discretionary investment management of the funds.

"As such, there will be no change to the investment objective, focus and approach of the funds," said iFast Corporation.

The seven authorised retail funds will be co-branded under the iFast-DWS brand name.

The company noted that the "strategic initiative" demonstrates its "continued commitment to working with its various partners such as partnering fund management companies like DWS, and other players in the wealth management industry to improve operational efficiencies and bring about lower costs for the benefit of investors".

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iFast has obtained approval from the Monetary Authority of Singapore for the transaction, and targets to complete it on July 30, subject to fulfilment of certain conditions. The consideration will be paid in full in cash upon completion, and the transaction will be financed through internal resources.

Shares of iFast closed at S$6.77 on Monday, up S$0.25 or 3.83 per cent, prior to the announcement.