Singapore’s state-owned investor Temasek Holdings is bringing together four of its asset management firms under a new company called Seviora Holdings, with a dedicated management team and more than S$75 billion (US$55.14 billion) of assets under management.
Two of the asset managers – Azalea Investment Management and Seatown Holdings International – are wholly owned by Temasek, while Fullerton Fund Management and InnoVen Capital are affiliated to Temasek.
Temasek says the firms will remain distinct entities with their own branding, have operational autonomy, and continue managing their investment strategies and organisational decisions.
The new holding company, which is expected to be formed by the end of the year subject to regulatory and other approvals, will be headed by Seatown Chairman Goh Yew Lin and Chief Executive Officer Jimmy Phoon, who will hold the same positions at Seviora. Mr. Goh is also a Temasek director. Mr. Phoon will remain as Seatown CEO until his replacement is appointed.
“A dedicated management team at Seviora will oversee the group’s strategy and growth of assets under management, as well as drive capital allocation to meet business requirements and growth opportunities,” Temasek says in a statement on October 6.
The company says Seviora “will provide access to a range of investment strategies across return profiles, asset classes and geographies” and work with the four firms on product development and marketing and distribution “with emphasis on collaboration and leveraging synergies”.
According to Mr. Goh, the asset management industry is in a period of “rapid change, driven by shifting investor preferences, evolving asset classes and large concentrated pools of capital”.
“By bringing four successful but distinctly different asset management companies together, we see the opportunity to accelerate business growth through creation of scale, synergistic product offerings and greater investment in technology,” he says in the statement.
Mr. Phoon adds that the move will help Temasek leverage the capabilities of its asset management firms and build a “leading Asia-based asset management group that provides access to a broad range of strategies”.
Temasek’s investment portfolio was valued at a net S$306 billion as of end-March 2020.
