Amundi has established operations in the Thai market with the launch of a wholly-owned subsidiary in Bangkok.
The firm has also become the first foreign asset manager in Thailand to receive a mutual fund brokerage licence for the distribution of products under the ASEAN Collective Investment Schemes (CIS).
The CIS, a cross-border fund passporting framework that includes Singapore, Malaysia and Thailand, was unveiled by regulators in those countries in October last year.
Prapatpong Weeramon, former director of financial institutions and public sector at the Thailand representative office of The Australia and New Zealand Banking Group Limited (ANZ), has been appointed managing director of Amundi Mutual Fund Brokerage Securities (Thailand) Company.
Pascal Blanqué, head of institutional clients and third-party distributors and Amundi chief investment officer, said: “Our approach is to leverage on our local presence by working in close partnership with our clients, providing a dedicated local sales and service infrastructure. The launch of the Bangkok office marks a turning point in our expansion strategy in South Asia and will help us strengthen our understanding of the Thai market. We are confident in achieving sustainable business through our long-term commitment to Thailand.”
Amundi said that its investment products would be distributed through securities companies, bank-backed asset managers, insurance companies and global distributors.
It also said it would also seek to enhance its institutional business by partnering with sovereign agencies, pension funds, government institutions and corporates through mandates managed by Amundi offices worldwide.
Jenny Sofian, head of South Asia and CEO of Amundi Singapore, told Asia Asset Management that the CIS would play a key role in terms of attracting foreign asset managers to setup in ASEAN countries: “We believe this is a very positive move for the asset management industry in the ASEAN countries; it brings wider investment choices for local investors and fosters regional integration.”
“We are very positive on the fund management industry in ASEAN countries given the rising affluence and the economic growth in the region,” she continued.
Ms. Sofian added that the Thailand office would have a team of four experienced local staff. Amundi has about 100 staff in South Asia, with over 60 based in Singapore.
“The Thailand asset management industry is at a sweet spot. There are tremendous growth opportunities with supportive demographics, rising affluence and economic growth. It is a fast growing financial centre backed by the government’s liberalisation efforts. The introduction of the ASEAN passport will also bring wider investment choices for local Thai investors. We believe the AUM of mutual funds in Thailand will be the top in South East Asia by 2018, reaching US$129 billion,” she added.
An increasing number of Western financial entities have expanded their presence in the ASEAN market. For example, in February 2013, New York-based securities brokerage service provider GFI Group opened an office in Manila to focus on the brokering of Philippine government and corporate fixed income products in the domestic market.
