Posted inBusiness moves

CIMB Principal to buy Finansa AM in Thailand

CIMB-Principal Asset Management has entered into a deal to acquire Thailand’s Finansa Asset Management.

The wholly owned subsidiary of Malaysia’s CIMB-Principal Asset Management will pay THB225m ($7.07m, £4.15m) to buy the asset management arm of Thailand Stock Exchange-listed Finansa Public Company. With this buyout, the company said it expects to further strengthen CIMB-Principal’s ASEAN franchise and its presence in the region.

Nazir Razak, group chief executive, CIMB Group said: “Thailand is a core market for our ASEAN franchise and this acquisition underscores our commitment to continue to grow our presence here.”

Following the acquisition, CIMB-Principal Asset Management Company sees its assets under management (AUM) more than double in size to THB70.35bn from THB34.05bn in June.

The fund house said it expects assets of the provident fund business to increase to THB25.54bn, taking it to rank eighth in the industry league, while the AUM of its mutual funds rose to THB44.13bn, placing it the 11th in the country.

Jumpon Saimala, CEO, CIMB-Principal Asset Management in Thailand said: “The integration of the two business platforms, leveraging on CIMB-Principal Asset Management’s presence in the retail mutual fund business as well as Finansa AM’s strength in the provident fund business portfolio and registrar system, will strengthen and enhance our capabilities to manufacture and distribute the best of breed and comprehensive range of products to our Thai retail and institutional clients.”

CIMB-Principal Asset Management Company in Thailand is 99.99% owned by Malaysia’s CIMB-Principal Asset Management along with other subsidiary companies in Singapore and Indonesia.   

CIMB Group holds a majority 60% stake in CIMB-Principal Asset Management, a joint venture in Malaysia, with the US-based Principal Financial Group holding the rest.

Thailand has been taking a slew of measures recently to deepen its capital markets and fund management industry which includes steps such as a three-year strategic plan to transform itself into a regional investment hub, improving on the fund distribution reach, directive on developing ‘post retirement products’, and a recent pact with Mekong countries.

Furthermore, Thailand also is a signatory to the ASEAN CIS Framework which is an initiative to facilitate cross-border offering of collective investment schemes to retail investors in Singapore, Thailand and Malaysia.

Thailand also joins Singapore, Australia, Korea, New Zealand, the Philippines and Thailand on another Asia Region Funds Passport (ARFP) framework which was under consultation until 11 July and looks similar to recent UCITS legislation in Europe.

Part of the Mark Allen Group.