Nikko Asset Management Group (Nikko AM) has successfully completed its acquisition of DBS Asset Management Ltd (DBSAM), one of the leading investment management firms in Southeast Asia, from DBS Bank Ltd (DBS).The transaction boosts Nikko AM’s assets under management by US$7.9 billion to over US$165 billion and establishes Nikko AM as the largest regional asset manager headquartered in Asia.
DBS has in turn acquired a 7.25% interest of the enlarged Nikko AM, forming a strategic alliance between the two companies. As part of the alliance, DBS and Nikko AM have entered into a non-exclusive distribution agreement through which Nikko AM’s investment products can be distributed through DBS’ network of core markets in the region. This arrangement brings together two award-winning firms with complementary strengths across products, investment platforms and distribution channels.
Employees of Nikko AM’s subsidiary in Singapore, Nikko Asset Management Singapore Limited (NAMS), will transfer to DBSAM within the next few weeks. DBSAM will be renamed as “Nikko Asset Management Asia Limited” (“Nikko AM Asia”) on or around October 17, and will provide broad investment management expertise across Asian equities and Asian fixed income.
Timothy McCarthy, chairman and CEO of Nikko AM, commented: “I am excited to announce that with the acquisition of DBSAM, we have become a truly local Singaporean company. Many of our team have had decades of experience working and living in Singapore and Asia, while Nikko AM has had an office in Singapore for more than 20 years.
Singapore will become the new centre of excellence for Nikko AM in Southeast Asia, with larger teams of fund managers, operations and sales and marketing professionals providing the ideal foundation to grow Nikko AM’s business across the region.
We would also like to welcome DBS as our new strategic shareholder and look forward to working with them to bring innovative Nikko AM investment products to their customers across the Asia-Pacific region.”
Under the terms of the agreement with DBS, Nikko AM has acquired:
(i) 100% of DBSAM, the asset management subsidiary of DBS;
(ii) a 30% stake in Hwang-DBS Investment Management Berhad (HDBS IM), Malaysia’s leading independent fund management firm;
(iii) a 51% stake in Asian Islamic Investment Management Sdn. Bhd. (AIIMAN); and
(iv) 100% of DBSAM’s Hong Kong subsidiary.
DBSAM’s 33% stake in the Chinese fund manager Changsheng Fund Management, is not part of the transaction and has been transferred to DBS. Nikko AM already has a strong presence in China, via its 40% ownership of Rongtong Fund Management, the seventh largest Sino-foreign joint venture fund management group in China.
