Macquarie Funds Managementnow has almost $6 billion invested in Asian joint ventures after taking a 40 per cent stake in Taiwanese boutique fund management firm United Securities Investment Trust Corporation (United SITE).
The deal with the Taipei based investment firm, which is the group’s first foray into the Taiwanese funds management market, builds on its existing relationships in Korea and Malaysia.
Head of Macquarie’s international division Ben Bruck says two unnamed executives will be relocating to Taipei to be involved in asset management, product development and risk management with United SITE.
The joint venture, which increases Macquarie’s funds under management (FUM) in Asia by 20 per cent, will develop a new range of global-standard products under the United brand for the local market.
Bruck says United has around $NT31 billion ($A1.3 billion) in FUM and a five-year track record of stable profitability and funds growth.
“This joint venture is part of a considered strategy of developing a network of local businesses in the major savings markets of the region through organic growth which is a deliberate preference over large-scale acquisitions,” Bruck says.
“Taiwan is attractive because its funds management industry offers large potential growth – at present, a relatively small share of investment savings are managed by funds management firms [10 per cent] compared with Australia [50 per cent].”
Macquarie’s presence in Taiwan will be led by division director, Peter Dale, who has 14 years’ experience in funds management at Macquarie.
The details of the deal remain undisclosed.
