Macquarie continues business restructure

Macquarie Group announced its second internal restructure in a week yesterday, when it said it would combine the funds and funds-based businesses of Fund Management Group, Equity Markets Group and Macquarie Capital Products in a new operating group to be named Macquarie Funds Group.

On Monday the group announced that it would combine the activities of Macquarie Capital Securities and Equity Markets Group into a new operating group to be called Macquarie Securities.

Late last year Macquarie combined the Banking and Securitisation Group with the retail banking and funds management division, Financial Services Group.

A bank spokesperson stressed that the latest changes were in train before the retirement of former chief executive Allan Moss and did not represent a move by the new CEO Nicholas Moore to recreate the organisation. The changes do not involve any redundancies.

The formation of Macquarie Funds Group is intended to provide clients with a single source of funds within Macquarie. The group will be headed by Shemara Wikramanayake, who was most recently in New York heading the North American division of Macquarie Capital Funds.

Of the three businesses going into the new group Macquarie Capital Products created niche products such as forestry and other agricultural funds, emerging market funds and Fortress Notes (a leveraged portfolio of senior secured loans); Funds Management Group is the retail managed funds group; and Equity Markets Group develops structured products.

The new Macquarie Securities, announced on Monday, will contribute 28 per cent of group earnings. It will operate under joint group heads, Kim Burke and Roy Laidlaw.

Macquarie said the merger was intended to deliver "a broader equity product range and better service" to the combined client base.

Macquarie Capital Securities is the group's institutional broking business. Equity Markets Group produces equity derivatives and structured products and offers equity finance.