Fairfax to offload InvestSmart

Media group to sell managed funds internet site to Australasian Wealth Investments.

Fairfax Media (FXJ) has inked a deal to offload managed funds internet site InvestSMART to Australasian Wealth Investments (AWK) for $7 million in cash, six years after buying it for $12 million.  

Fairfax bought InvestSMART, which allows customers to research and purchase from about 4,000 managed funds, in September 2007 in an attempt to continue its online expansion.

The groups have entered a binding agreement that hinges on completion of a capital raising by AWK.

If the transaction falls over, AWK will pay Fairfax a $150,000 break fee.

Under the deal, Fairfax will continue to advertise and promote its products to InvestSMART's client base.