Published by Asia Asset Management – 3rd July 2017
Aberdeen Asset Management (Aberdeen) will acquire Taipei-based asset manager Value Partners Concord Asset Management (VPCAM) from its shareholders, including Value Partners Group and Concord Securities Co, for an undisclosed sum in a move that will allow the Scottish company to access the island state’s onshore fund market.
Aberdeen, which is in the process of merging with the Scotland’s Standard Life Plc, says in a statement that the acquisition is subject to regulatory approvals.
VPCAM is licensed to manage locally domiciled funds and onshore mandates in Taiwan, Aberdeen says in a June 29 statement.
Hugh Young, managing director of Aberdeen’s Asia Pacific business, says in the statement that “Taiwanese authorities have a very progressive view on developing the investment industry. The company is keen to become more involved and the acquisition shows its commitment.”
The company will seek approval to merge VPCAM with Aberdeen International Securities Investment Consulting Company Limited (AISICCL), its existing wholly-owned subsidiary in Taiwan.
AISCCL is only licensed to operate offshore fund distribution in the island state. It has 26 Luxembourg-registered funds with combined AUM of about US$1.5 billion.
VPCAM manages the Value Partners Concord Greater China Value Fund, which had a net asset value (NAV) of NT$125 million ($4.11 million) as of May 31.
Aberdeen says it’s “keen to develop new products, especially in multi-assets where the group has considerable experience and has been building a regional team.”
VPCAM was created in March 2011 when Value Partners acquired a 56% stake in KBC Concord Asset Management from Belgium banking group KBC Group. Concord Securities and a group of minority shareholders own the balance 44%.
Other foreign asset managers are also venturing into Taiwan’s onshore fund market. UOB Asset Management (Taiwan), a subsidiary of Singapore’s UOB Asset Management, secured a licence last year to operate locally domiciled funds.
Aberdeen recently received the go-ahead from its shareholders to merge with Standard Life to create a global asset management entity with total AUM of $660 billion. The merger is expected to be completed on August 14.
