UOB Completes Indonesian Asset Manager Acquisition

UOBAM is strengthening its franchise in Southeast Asia through its expansion into Indonesia, the region’s largest market, with the acquisition of PG Asset Management.

UOB Asset Management, a wholly-owned subsidiary of UOB, has completed its acquisition of a 75-percent stake in Indonesia’s PG Asset Management (PGAM), the bank said in a media statement on Wednesday.

The Jakarta-based asset manager, which also has a branch in Surabaya, conducts conventional and structured fund management activities, including managing mutual funds, hedge funds, private equity and REITs, for retail and institutional investors.

«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,» Thio Boon Kiat, Group CEO of UOBAM, said about the acquisition.

The deal, valued at S$2.25 million, was previously announced in November 2018.

In the statement, UOB said it is optimistic about Indonesia’s asset management industry, given its «favorable demographics and positive economic outlook.» It noted that the country’s mutual fund industry rose 11 percent year-on-year in 2018, with the industry valued at IDR536.88 trillion (S$52.2 billion) as of end-July 2019, citing data from the country’s Financial Services Authority

PGAM was founded in 2011 and holds an investment management license in Indonesia. Its other shareholder is Multikem Suplindo, a wholly-owned subsidiary of Celebes Capital.

UOB Asset Management manages 55 unit trusts in Singapore and is one of the largest unit trust managers in terms of assets under management, with S$33.6 billion ($24.9 billion) in clients’ assets as of end-June 2019, according to the bank. It now operates in eight markets across Asia: Brunei, China, Indonesia, Japan, Malaysia, Singapore, Taiwan and Thailand.