NIKKO AM SEALS STRATEGIC ALLIANCE WITH DBS BANK TO
BECOME ASIA’S LARGEST REGIONAL ASSET MANAGER
***
DBSAM Singapore to be renamed Nikko Asset Management Asia Limited
Singapore, 30 September 2011 - Nikko Asset Management Group (“Nikko AM”) and DBS Bank Ltd (“DBS”) today announced the completion of the agreement to combine DBS Asset Management Ltd (“DBSAM”/ 星展资产管理有限公司) and Nikko AM. The transaction boosts Nikko AM’s assets under management by USD7.9 billion1 to over USD165 billion2 and establishes Nikko AM as the largest regional asset manager headquartered in Asia.
The agreement involves Nikko AM acquiring DBSAM for SGD137 million (USD104 million). DBS has in turn acquired a 7.25%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 throughout 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. The combined platform will be a strong source of product manufacturing, sales support and training for DBS.
DBSAM will continue to operate under the legal name DBS Asset Management Ltd until its new legal identity as “Nikko Asset Management Asia Limited” (“Nikko AM Asia”) comes into effect on or around October 17. The majority of DBSAM’s funds will be renamed ”Nikko AM Shenton”.
Employees of Nikko AM’s subsidiary in Singapore, Nikko Asset Management Singapore Limited (“NAMS”), will transfer to Nikko AM Asia within the next few weeks and thereafter, Nikko AM Asia will comprise the integrated investment capabilities and operations of DBSAM and NAMS. The enlarged Singapore asset manager 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.”
Sim S. Lim, DBS Singapore Country Manager and DBSAM Chairman commented: “With the economic gravity shifting to Asia, DBS is focused on offering our customers a global investment strategy with an Asian bias. The strategic alliance will foster greater collaboration between the two organisations as we work together to create innovative Asian investment products and shorten the time to market of new offerings.
For example, since the agreement was announced, DBS has worked closely with Nikko AM to launch the DBS Asia Asset Allocator Fund and the DBSAM Japan Recovery Fund, enabling our customers to invest in Asia. This reinforces DBS’ commitment to taking our wealth management proposition to a new level as we execute against strategy to become the Asian bank of choice.
With the completion of the deal, we now look forward to developing even more insightful investment solutions with Nikko AM for the benefit of our customers.”
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. DBS’ relationship with Changsheng is integral in reinforcing DBS’ leadership in China-related investment products in the region. 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.
The office address of Nikko AM Asia will be 8 Cross Street, #08-01, PWC Building, Singapore 048424.
For more than 50 years, Nikko AM has been meeting the investment needs of investors in the Asia region, as well as helping global investors with their investments into Asia. With the acquisition of DBSAM and the acquisition earlier this year of Tyndall Investments - one of the largest investment management firms in Australia and New Zealand - Nikko AM has enhanced its strong and extensive footprint in the Asia-Pacific region. The firm seeks to become the world’s leading Asian asset manager of choice.
Notes:
1DBSAM assets under management include pro rata amount of assets held in joint ventures as at June 30, 2011, excluding Changsheng Fund Management.
2AUM as at June 30, 2011, including AUM from DBSAM, and pro rata interest in joint ventures as of the same date.
3Rounded to the nearest one hundredth of a percent.
About Nikko Asset Management
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 in 2010 in the Equity Asia Pacific Ex-Japan Category over 3 years, and the Global Investor Award 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.
About DBS
DBS - Living, Breathing Asia
DBS is a leading financial services group in Asia, with over 200 branches across 15 markets. Headquartered and listed in Singapore, DBS is a market leader in Singapore with over four million customers and also has a growing presence in the three key Asian axes of growth, namely, Greater China, Southeast Asia and South Asia. The bank's strong capital position, as well as "AA-" and "Aa1" credit ratings that are among the highest in the Asia-Pacific region, earned it Global Finance's "Safest Bank in Asia" accolade for three consecutive years, in 2009, 2010 and 2011.
DBS provides the full range of services in consumer, SME and corporate banking activities across Asia and the Middle East. As a bank born and bred in Asia, DBS also understands the intricacies of doing business in the region’s most dynamic markets. This market insight and regional connectivity have helped to drive the bank’s growth as it sets out to be the Asian bank of choice. The bank believes that building lasting relationships with its customers is an integral part of banking the Asian way.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. The bank acknowledges the passion, commitment and can-do spirit in all of our 17,000 staff, representing over 30 nationalities. For more information, please visit www.dbs.com.