Nikko AM completes acquisition of DBS Asset Management

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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).

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[1] to over US$165 billion[2] and establishes Nikko AM as the largest regional asset manager headquartered in Asia.

DBS has in turn acquired a 7.25 percent[3] 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 percent of DBSAM, the asset management subsidiary of DBS;

(ii) a 30 percent stake in Hwang-DBS Investment Management Berhad (HDBS IM), Malaysia’s leading independent fund management firm;

(iii) a 51 percent stake in Asian Islamic Investment Management Sdn. Bhd. (AIIMAN); and

(iv) 100 percent of DBSAM’s Hong Kong subsidiary.

DBSAM’s 33 percent 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 7th largest Sino-foreign joint venture fund management group in China.

-oOo-

For inquiries, please contact:

Tokyo
Corporate Communications Department
Kyoko Wada, Megumi Yoshizawa, Naho Yohda
Tel. +81-3-6447-6117, +81-3-6447-6571, +81-3-6447-6712
Email: corpcom@nikkoam.com

Singapore
Sue-Lyn Yeoh, Vice President, Marketing
Tel: +65-6878-3447; Mobile: +65 9757 3924
Email: SueLyn@dbs.com

International
Jo Nhan, Marketing Communications Manager
Tel: +852-3940-3939
Email: Jo.Nhan@nikkoam.com

Nikko Asset Management (Nikko AM) is the largest regional asset management company headquartered in Asia. With the addition of DBSAM, Nikko AM’s total AUM is over US$165 billion.

Established in 1959 and with its head office in Tokyo, Nikko AM is one of the largest asset management companies in Japan, with its investment products sold by over 200 distributors. The firm also has offices in London, New York, Singapore, Hong Kong, Sydney, Melbourne, Brisbane and Auckland. Nikko AM holds a 40% stake in Rongtong Fund Management, a joint venture investment management company in China.

Nikko AM offers retail and institutional investors access to a wide range of investment strategies in equities, fixed income and alternative asset classes, in both developed and emerging markets. The company adopts a “multi local” approach, giving local management teams a high degree of autonomy to address market conditions and client servicing needs, which the firm believes can vary widely from market to market.

Nikko AM’s stable management team has significant Asian as well as global expertise, which has been instrumental in achieving growth across the business. In recent years, Nikko AM has been recognized by industry peers for its innovative investment products and has won a number of prestigious awards, including the Lipper Best Fund Award 2010 in the Equity Asia Pacific Ex-Japan Category over 3 years, and the Global Investor Award 2010 for Investment Excellence in Japanese Equities.

Nikko AM is majority owned by The Sumitomo Trust & Banking Co. Ltd., while DBS Bank is the second largest shareholder. Employees also own a stake in the company. Nikko AM continues to operate independently.

For more information, please visit http://en.nikkoam.com.

September 30, 2011

 

 


[1] DBSAM assets under management include pro rata amount of assets held in joint ventures as at June 30, 2011, excluding Changsheng Fund Management..

[2] AUM as at June 30,2011, including AUM from DBSAM, and pro rata interest in joint ventures as of the same date.

[3] Rounded to the nearest one hundredth of a percent.