Australia’s Scudder Investments operations will merge with Deutsche Asset Management’s after their European parents, Zurich and Deutsche Bank, swapped key businesses. The bank bought Scudder – and a foothold in the US investments market – for $US2.5 billion. Zurich also got 76% of Deutsche’s life operation in Germany and 100% of its life companies in Italy, Spain and Portugal.

Zurich’s head of distribution in Australia, Steve Newnham, said Zurich’s strengths in the retail market complement the wholesale capabilities of Deutsche. “It’s a very good fit.”