UOB Asset Management, a wholly-owned subsidiary of Singapore-based United Overseas Bank has acquired a 75 percent stake in Indonesia’s PG Asset Management. The deal is expected to be around S$2.25 million.
Through this investment, UOB Asset Management plans to offer its expertise to Indonesian investors in areas such as Islamic investments and multi-asset strategies. It will also provide comprehensive insights into the Indonesian market and specialised solutions in Indonesia-focused funds. It will also provide investment mandates for investors across its network.
Jakarta-based PG Asset Management in a financial company that specialises in mutual funds across equity, debt and money market securities. The company offers its products and services to both retail and institutional investors.
The acquisition will also help UOB Asset Management to strengthen its position in Asia since Indonesia is the region’s largest market. It is also in line with United Overseas Bank’s regionalisation plan.
According to reports, Indonesian mutual fund industry grew by 11 percent year-on-year to S$49.4 billion in 2018. As at end-July 2019, the industry was valued at S$52.2 billion.
Thio Boon Kiat, group chief executive officer of UOB Asset Management told the media that, “We see immense potential in Indonesia’s asset management industry, driven by its economic development, increasing affluence and rising demand from individuals and institutions for investment solutions to protect and to grow their assets.”
As of July 31, 2019, the company had S$32.4 billion in clients’ assets. It also has business units in Thailand, China, Malaysia, Brunei, Taiwan, and Japan. UOB Asset Management also manages 56 unit trusts in Singapore.