Published by Fund Selector Asia – 26th Nov 2018
The acquisition will enable the French firm to develop onshore funds in Taiwan.
Amundi Asset Management has entered into a share sale and purchasing agreement with all shareholders of Mirae Asset Global Investments in Taiwan, in which the French firm will acquire the Korean firm’s Taiwan fund business.
The deal is expected to be completed by the end of December, subject to final approval by Taiwan’s Financial Supervisory Commission (FSC), Amundi AM said, but did not give details about the deal.
FSA sought more information from Mirae Asset, but the firm was not able to reply in time for publication.
Amundi AM, which first established its Taiwan business in 2006, has a Security Investment Consulting Enterprise (SICE) licence. A SICE licence enables foreign firms to offer their offshore funds to domestic investors.
Mirae Asset has a Securities Investment Trust Enterprise (SITE) licence in Taiwan, which enables the firm to manufacture Taiwan-domiciled funds.
With the acquisition, Amundi aims to expand its product suite by offering onshore solutions to Taiwan’s investors, the firm said.
Mirae Asset in Taiwan manages four onshore funds – three equity and a money market fund – with total assets of around NT$2bn ($65m), according to data from Morningstar Direct. Year-to-date, the firm has seen net outflows of NT$638m.
It is unclear if Amundi will take over the management of the Mirae funds.
Taiwan hot or not?
Taiwan has been a hot spot lately for foreign managers, with a number of them planning to tap the country’s fund management industry.
For example, Principal Global Investors plans to have a physical presence in Taiwan, Kirk West, PGI’s head of internal offices and CEO for Asia, said previously.
West did not give any timeline, but said it depends on “finding the right time and the right partner”. Also undecided is whether the firm would set up a fully-owned subsidiary or form a joint venture.
In July, Pimco opened an office in Taipei in July after it received a SICE licence from the FSC.
A number of firms have been successful in their Taiwan businesses, and both Invesco and Schroders saw their AUM double this year.
However, Taiwan has not been the best fit for all asset managers. Columbia Threadneedle pulled out earlier this year and terminated sales of its 13 offshore funds.
Value Partners Concord Asset Management, which had a SITE licence, was also sold to Aberdeen Standard Investments in June. Value Partners Concord was set up in Taiwan in 2011, after Hong Kong-based Value Partners acquired KBC Asset Management’s entire stake (55.46%) in KBC Concord Asset Management.
