Amundi procures KAF Fund Management’s fixed income business

01 April 2014   Category: News, Asia, Malaysia   By Asia Asset Management

Amundi announced on March 31 the acquisition of the fixed income business of KAF Fund Management through Amundi Malaysia, its wholly owned subsidiary in Kuala Lumpur. The Kuala Lumpur-based KAF Fund Management, a subsidiary of the KAF Group, with more than US$1.2 billion in AUM as of February 28, 2014, is an institutional fixed income specialist as well as a retail fund manager. The purchase of the expertise and investment capabilities in fixed income will significantly strengthen Amundi’s range of product offerings and its positioning as a leading foreign asset manager in Malaysia.

This acquisition is a natural step in Amundi’s development following six years’ presence in the Malaysian equities market and four years on-the-ground experience in the sukuk product offering.

Through this acquisition, Amundi will:

  • Significantly expand its expertise in global and local sukuk management to include local conventional fixed income capabilities;
  • Strengthen its overall investment offerings, which now cover equity and fixed income in both Shariah and conventional products;
  • Enhance the development of Amundi’s presence in the Southeast Asia region with strong capabilities to adapt and customise its investment solutions for its institutional and retail clients.

Following the acquisition, KAF Fund Management’s fixed income business will be taken over by Amundi Malaysia, which remains a fully owned and controlled subsidiary within the Amundi Group. Amundi Malaysia will be managing more than US$4.3 billion of assets and become the top foreign asset management firm in the country. Roslina Abdul Rahman, managing director of Amundi Malaysia, will take on the role of managing director of the enlarged company. She reports to Jenny Sofian, chief executive officer of Amundi in Southeast Asia and Australia.

Thariq Ahmad, former chief executive officer of KAF Fund Management, will become senior advisor and head of fixed income strategies of Amundi Malaysia. “This transaction represents a great opportunity for KAF Fund Management to build relationships with a leading player in global asset management. The result will be an enlarged entity that will benefit both our clients and our employees. The fixed income team is looking forward to working with Amundi to build upon their recent successes and further expand our presence and capabilities to better serve their investors. Our aim is to build a long term relationship between KAF Group and Amundi as we have agreed on a long-term commitment regarding the management of most of KAF retail Malaysian funds,” he said.

“The acquisition of KAF Fund Management’s fixed income business is further evidence of Amundi’s commitment to Malaysia and Southeast Asia. It will enhance the range and the quality of our fixed income offerings to our clients globally, thanks to the expertise of the KAF Fund Management team, which is highly complementary to our existing expertise. We share common values based on long-term commitment to clients and the delivery of sustainable performance through a disciplined research-driven investment process,” said Pascal Blanqué, deputy chief executive officer and chief investment officer of Amundi, adding, “while Europe is our domestic market, Asia is a key market and a second nature for Amundi”.

All key clients of Amundi in Southeast Asia have been informed of this operation. This acquisition has been approved by regulatory authorities and is also supported by the management and staff of KAF Fund Management.