AllianzGI acquires UOB Asset Management business

Allianz Global Investors (AllianzGI) has agreed to acquire UOB Asset Management (UOBAM), expanding its Asia Pacific presence and increasing assets under management in the region to more than EUR 170 billion ($196 billion).

The proposed acquisition of an established on-the-ground asset management platform would provide access for AllianzGI to a number of important high-growth markets, including Thailand, Malaysia and Vietnam. It will also provide an opportunity to further scale AllianzGI’s business in markets where it has an established presence, including Singapore, Taiwan and Indonesia.

Complementary investment capabilities

AllianzGI and UOBAM’s investment capabilities are highly complementary. UOBAM offers strong Southeast Asian market investment expertise and AllianzGI has a comprehensive global product suite grounded in active investing. Together, the combination will enable clients to benefit from access to a broader range of innovative investment capabilities and solutions.

In particular, the combined platform will offer strengthened Southeast Asian investment expertise, including regional and single-country equity strategies and Sharia-compliant offerings, as well as support the development of future differentiated solutions for clients.

Distribution agreement with UOB

The transaction is, importantly, accompanied by a long-term distribution agreement, which provides long-term access to the retail client network of UOB, reflecting the bank’s confidence in the combined group’s ability to serve its client base with innovative products.

Tobias Pross, CEO of Allianz Global Investors, said: “UOBAM is one of Southeast Asia’s leading asset managers, with very well-regarded investment capabilities and a strong distribution network. Adding their complementary Southeast Asian investment expertise to our global platform will boost our combined offering and significantly accelerate our growth in this dynamic region.

“Reinforcing our long-term commitment to broadening the reach of our investment offering in Southeast Asia, this deal provides us with deeper market connectivity and opens new opportunities to engage with an expanded base of clients. With a strengthened regional presence, we will be able to serve an even broader range of investors, providing them with access to a wider range of innovative wealth management and retirement solutions that help them meet their investment objectives.”

Wee Ee Cheong, deputy chairman and chief executive officer, UOB, said: “UOB serves more than eight million customers across ASEAN, whose wealth and investment needs are becoming increasingly diverse and sophisticated. This partnership sharpens our focus on wealth advisory and distribution. By combining UOB's advisory expertise and customer relationships with Allianz Global Investors’ investment capabilities, we are well positioned to meet our customers’ evolving needs and support their long-term wealth goals. This also enables us to accelerate wealth management growth while enhancing long-term shareholder value. During the transition period, maintaining continuity for customers and employees is our priority. We thank UOBAM's management team and employees for their dedication and contributions over the past four decades in building a trusted regional asset management franchise.”

Re-disseminated by Wealth and Society