ING to buy ABN AMRO’s local mutual funds business in Taiwan
Amsterdam, 17 July 2006, ING Group today announced that it has reached an agreement with ABN AMRO Asset Management (Asia) Limited to acquire its Taiwanese domestic asset management business, ABN AMRO Asset Management (Taiwan) Ltd, a registered Securities Investment Trust Enterprise (SITE). Subject to regulatory approval, ING intends to merge ABN AMRO’s SITE with its existing domestic asset management venture, ING CHB Securities Investment and Trust Co., Ltd.
ING will pay up to EUR 68 million (subject to final adjustments upon closing) for the ABN AMRO business, which is the fifth largest local mutual fund manager in Taiwan with assets under management (AUM) of EUR 2.9 billion (NTD 119 billion). The purchase will strengthen ING’s existing position as the economy’s largest overall asset manager, including local mutual fund assets and institutional mandates. The combined business will have assets under management of EUR 10.8 billion (NTD 446 billion), representing a market share of close to 17%. The transaction will have a slightly negative impact on the debt/equity ratio of ING Group of 12 basis points.
The businesses provide a complementary offering in terms of products and distribution. ABN AMRO SITE’s fund portfolio primarily consists of Taiwanese dollar bond funds, a market segment in which it has built a strong reputation and a consistent performance track record. The company uses a wide range of distribution channels, including a strong direct sales team.
ING CHB Securities Investment and Trust is Taiwan’s largest asset manager with total AUM of over EUR 7.9 billion (NTD 327 billion). It has a strong product portfolio of overseas investing equity funds as well as of Funds-of-Funds, and a convincing track record in the Taiwan equities segment. The company’s distribution is largely focused on banks, insurance and securities partners. The combination with ABN AMRO’s SITE will boost ING’s ranking in the local mutual funds industry, creating the industry leader in this market segment with AUM of EUR 4 billion (NTD 163 billion) and over 8% market share.
Chris Ryan, CEO of ING Investment Management Asia/Pacific, stated: “We are delighted to bring together two of the highest quality teams in the Taiwan onshore asset management market, establishing a centre of excellence in fund management expertise, to serve our clients better and support product innovation. By combining our proven investment expertise in different segments of the market - complementary in terms of product strengths and distribution profile - I am sure that the enhanced product offering will be a very convincing proposition to our expanding client base.”
In addition, ING‘s asset management activities in Taiwan include ING Fund Services, a securities investment consulting enterprise and market-leading offshore fund distribution platform with over EUR 3.5 billion (NTD 142 billion) in assets under advisory.
ING’s other businesses in Taiwan are ING Antai, a leading life insurance company with over 12,000 staff and agents; and ING Wholesale Banking, the corporate and investment banking arm offering financial markets products, corporate lending and corporate finance services.
ING is a global financial institution of Dutch origin offering banking, insurance and asset management to over 60 million private, corporate and institutional clients in more than 50 countries. With a diverse workforce in excess of 117,000 people, ING comprises a broad spectrum of prominent companies that increasingly serve their clients under the ING brand.
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