Philips divides asset management and pension administration activities
Royal Philips Electronics, Merrill Lynch and Hewitt Associates (NYSE:HEW) today announced agreements in principle about the sale of Asset Management and Pension Management activities (part of Philips Pensions Competence Center, PPCC) to Merrill Lynch Investment Managers Limited (MLIM) and Hewitt Associates for Pension Administration (Hewitt), respectively. Terms of the transactions were not disclosed.
The Board of Trustees of Philips Pension Fund (PPF) fully agrees with both these transactions. As part of the transaction with MLIM, PPF will enter into a long-term partnership with MLIM for the management of PPF> '> s assets. As part of the transaction with Hewitt, PPF will enter into a long-term partnership with Hewitt for pensions management and administration services.
PPCC, based in Eindhoven (The Netherlands), is one of the leading in-house pension fund managers in the Netherlands. It manages EUR 13.5 billion of marketable securities assets for PPF and certain third party clients through its subsidiary Philips Investment Management (PIM) and provides pensions management and administration services for 165,000 participating members, including 137,000 members from PPF, through its subsidiary Philips Pension Management. The fund management activities of MLIM have some EUR 369 billion of funds under management globally.
As part of the transactions, both MLIM and Hewitt will take over the corresponding employees of PPCC.