Posted inBusiness moves

Nikko buys Treasury Asia Asset Management

Nikko Asset Management has acquired Asia-Pacific boutique investment manager Treasury Asia Asset Management (TAAM).

The financial details of the deal were not disclosed, however Nikko AM president and chief executive, Charles Beazley, revealed at a press briefing that TAAM’s founder Peter Sartori and his eight-strong team will be integrated into its Singapore based equities team.

Following the merger, Sartori will take up the position of head of equities for Asia.

“This acquisition brings us sophisticated Asian equity strategies, which are gaining well-deserved traction among investors around the world,” said Beazley.

“The team will offer products to institutional and retail investors, who deserve nothing less than the highest quality products, and which TAAM has a distinguished track record of delivering.”

TAAM was founded in 2005 by Sartori and Treasury Group, with offices in Sydney and Singapore.

It specialises in active investment management in the Asia Pacific Region, managing portfolios for both institutional and retail investors to achieve long-term capital growth.

Nikko said in a statement that the acquisition “significantly enhances” its ability to provide institutional-quality Asian equity products to its clients and prospects in markets worldwide.

Beazley also described the TAAM acquisition as “good for strengthening capabilities”, adding the company is looking for more such buys.

In 2011, Nikko Asset Management acquired DBS Asset Management, a subsidiary of DBS Bank.

Nikko AM is majority owned by Sumitomo Mitsui Trust Holdings, with DBS Bank as the second largest shareholder. It currently has over $156bn in assets under management.

TAAM’s eight strong team, which includes portfolio managers, analysts and a dealer, currently manages about $300m in Asia ex-Japan equities. The team’s investment style revolves around bottom-up stock picking of mid- to large-cap equities, with a focus on long-term holdings of high-conviction names.

“Our sectoral coverage approach will be highly complementary with Nikko AM’s more geographic and thematic focus. In turn, we look forward to working with Nikko AM’s professionals in the region, Europe and in North America to build wealth for investors,” said Sartori.

On market views, Sartori said they are “finding best ideas” in Northeastern Asian countries such as China, Korea, and Taiwan that have been ignored by investors in last few years.

On Chinese equities he said, “We admit there are challenges, but there are some great stock-picking opportunities. We are having a very selective approach and staying clear of any sectors with excessive capacity or fierce competition.”

Part of the Mark Allen Group.