DBS Acquisition Brings Nikko AM Assets To US$165B

Sep 30 2011 | 10:14am ET

Nikko Asset Management Group says its recently completed acquisition of DBS Asset Management has made it the largest regional asset manager in Asia with over US$165 billion under management.

The purchase of DBS, a leading Southeast Asian investment firm, from DBS Bank boosted Nikko’s AUM by US$7.9 billion. Under the terms of the deal, the value of which was not revealed, Nikko AM acquired 100% of DBSAM, the asset management subsidiary of DBS; a 30% stake in Hwang-DBS Investment Management Berhad, Malaysia’s leading independent fund management firm; a 51% stake in Asian Islamic Investment Management; and 100% of DBSAM’s Hong Kong subsidiary.

DBS has in turn acquired 7.25% of the enlarged Nikko AM, forming a strategic alliance between the two companies. As part of the alliance, the two 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.

Employees of Nikko Asset Management Singapore (the company’s Singapore branch) will transfer to DBSAM within the next few weeks and DBSAM will be renamed Nikko Asset Management Asia on or around October 17.

Timothy McCarthy, chairman and CEO of Nikko AM, said: “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.”

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.

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