The big Asian-based asset management company Nikko Asset Management (Nikko AM) has completed its acquisition of DBS Asset Management (DBS AM) from DBS Bank.
The addition of DBS AM's $7.9 billion in assets under management (AUM) brings the Tokyo-based firm's total AUM to $165 billion.
DBS Bank has formed a partnership with Nikko AM, taking a 7.25 per cent stake in the company. Under the agreement between the two companies, DBS Bank will distribute Nikko AM's investment products throughout the region.
DBS AM will absorb the current employees of Nikko AM Singapore, and will subsequently be renamed Nikko Asset Management Asia Limited on or around 17 October.
Nikko AM chief executive Timothy McCarthy said the acquisition of DBS AM would see Nikko AM become a "truly local Singaporean company".
"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," McCarthy said.
The partnership with DBS Bank has also seen Nikko AM take a 30 per cent stake in the Malaysian-based Hwang-DBS Investment Management Berhad; a 51 per cent stake in Asian Islamic Investment Management Sdn Bhd; and a 100 per cent stake in DBSAM's Hong Kong subsidiary.
The research house has offered a silver lining after super fund returns saw the end of a five-month streak last month.
A survey of almost 6,000 fund members has identified weakening retirement confidence, particularly among those under 55 years of age, signalling an opportunity for super funds to better engage with members on their retirement journey.
The funds have confirmed the signing of a successor fund transfer deed, moving closer to creating a new $29 billion entity.
A number of measures, including super on Paid Parental Leave, funding to recover unpaid super, and frameworks to encourage investment in the energy transition, have been welcomed by the superannuation industry.
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