With the purchase of the expertise and investment capabilities of KAF Fund Management, Amundi Malaysia expects to “significantly strengthen” its range of product offerings and its positioning as a foreign asset manager in the country.
KAF Fund Management, which is a subsidiary of the KAF Group, is an institutional fixed income specialist as well as a retail fund manager with more than $1.2bn (MYR4bn) in assets under management, as of 28 February.
Following this acquisition, Amundi Malaysia will manage more than $4.3bn (MYR14bn) of assets, making it the largest foreign asset management firm in the country.
Amundi called this acquisition a “natural step” in its development following six years in the Malaysian equities market and four years “on-the-ground” experience offering sukuk products.
Pascal Blanqué, deputy chief executive and chief investment officer of Amundi said: “The acquisition… will enhance the range and the quality of our fixed income offerings to our clients globally, thanks to the expertise of the KAF Fund Management team, which is highly complementary to our existing expertise.”
“While Europe is our domestic market, Asia is a key market and a second nature for Amundi.”
This acquisition will aid Amundi to “significantly” expand its expertise in global and local sukuk management to include local conventional fixed income capabilities. It will also strengthen its overall investment offerings, which now covers equity and fixed income in both Shariah and conventional products.
Following the deal, Roslina Abdul Rahman, managing director of Amundi Malaysia, will take on the role of managing director of the enlarged company. Rahman reports to Jenny Sofian, CEO of Amundi in Southeast Asia and Australia.
Thariq Ahmad, former CEO of KAF Fund Management, will become senior advisor and head of fixed income strategies of Amundi Malaysia.
Amundi said the acquisition has been approved by regulatory authorities and is supported by the management and staff of KAF Fund Management.
As of the end of December, Amundi had more than €777bn worth of assets under management.