Aberdeen to snap up Indonesian asset manager

27 February 2014   Category: News, Asia, Indonesia   By Asia Asset Management

Aberdeen Asset Management Asia Limited (AAMAL) and PT NISP Sekuritas (NISPS) have announced that AAMAL will acquire 80% of the share capital of PT NISP Asset Management (NISPAM) from NISPS.

On February 25, AAMAL entered into a conditional sale and purchase agreement (CSPA) with NISPS to, subject to the terms and conditions of the CSPA, acquire 80% of the shares of NISPAM in an all-cash transaction.

NISPS is controlled by the Surjaudaja family – the founders of Bank NISP – which was established in 1941. The bank is now a subsidiary of OCBC Bank and known as Bank OCBC NISP, rated AAA by Pefindo (S&P affiliated). It is the 7th largest private bank in the country and has won numerous awards since the 1990s.

Hugh Young, AAMAL’s managing director, comments: “We have long known the Surjaudaja family and PT NISP Sekuritas and their conservative, low key style fits with ours. From that perspective alone we are very excited about our partnership, and believe our investment expertise will complement their local distribution and product knowledge. We see enormous potential in Indonesia given its growth characteristics. Rising real wealth is increasing savings and that is creating demand for investment products that can tap opportunities in capital markets, whether in Indonesia or overseas.”

NISPAM was spun out of NISPS in 2011, having been in operation as a fund manager in Indonesia since 2001. NISPAM currently manages approximately 3.5 trillion rupiah (approximately US$300 million) in mutual funds, protected funds and discretionary accounts on behalf of institutional, corporate and retail clients in Indonesia.

AAMAL has been investing in Indonesia since the 1980s and has in excess of US$2.8 billion invested in Indonesian equities on behalf of clients globally. It was the first foreign asset manager to launch a dedicated Indonesian equity fund in Singapore, in 1997, and that fund has now grown to S$180 million (US$142.13 million) (as at end January 2014).

Completion of the transaction is subject to the satisfaction of certain conditions including, amongst others, the receipt of regulatory approval from the Indonesian Financial Services Authority (Otoritas Jasa Keuangan or OJK) and the Monetary Authority of Singapore and, in addition, the approval of NISPAM’s shareholders.

Following completion, in accordance with the terms and conditions of the CSPA, a change of control in NISPAM will result in AAMAL assuming management and operational responsibility, whereupon it will apply its global investment process, operating, compliance and business systems to NISPAM.

Pramukti Surjaudaja, president commissioner of PT Bank OCBC NISP, says: "We have known Hugh Young and Aberdeen Asset Management for more than 20 years, and are grateful for their strong support and trust. We have no doubt that they will be able to reach their vision and mission in Indonesia and be recognised here as a top asset management company."