Singapore-based UOB Asset Management (UOBAM) has acquired a 75 per cent stake in PG Asset Management (PGAM) from local firm Multikem Suplindo for S$2.25 million ($1.63 million), according to an announcement.
The wholly-owned subsidiary of United Overseas Banking Limited, UOBAM first announced its acquisition plan in November 2018. Multikem Suplindo, a wholly-owned subsidiary of Celebes Capital, still owns a minority stake in PGAM.
UOBAM’s entry in Indonesia is expected to strengthen its footprints across the region. The growth potential in the Southeast Asia largest economy is driven by its economic development, burgeoning affluence and rising demand for investment solutions among people, said Group CEO Thio Boon Kiat.
According to data available with Financial Services Authority of Indonesia, the country’s mutual fund industry recorded an annual growth of 11 per cent in 2018 to touch 507.09 trillion Rupiah ($35.7 billion). By the end of July 2019, the industry was valued at 536.88 trillion Rupiah ($37.77 billion).
UOBAM is currently present across eight markets in Asia namely Brunei Darussalam, China, Indonesia, Japan, Malaysia, Singapore, Thailand and Taiwan. Its network includes Singapore-based UOB Alternative Investment Management (UOBAIM) and Malaysia-based UOB Islamic Asset Management.
In October 2018, DealStreetAsia reported about UOBAIM’s plan to set up a Southeast Asia-focused fund-of-funds (FoF) with a corpus of $200-300 million. The FoF has been planned to help smaller venture capital and private equity firms and first-time managers raise money.
Currently, UOBAM and its subsidiaries manage assets worth around S$33.6 billion ($24.9 billion). The firm also has two joint venture companies namely China-based Ping-An Fund Management Company and Singapore-based UOB-SM DS Asset Management.