SINGAPORE - Investment firm Temasek is setting up a new entity with $75 billion worth of assets under its management, it announced on Tuesday (Oct 6).
Seviora Holdings, as it is called, will be the operational holding company for four existing asset management firms that are now either wholly-owned by, or affiliated to Temasek.
They are Azalea Investment Management, Fullerton Fund Management Company, InnoVen Capital and Seatown Holdings International.
The group's combined assets under management will be about $75 billion.
Seviora Holdings, which will be based in Singapore with its own management team, aims to provide access to a range of investment strategies across return profiles, asset classes and geographies, Temasek said.
It will work with its four component firms in areas such as product development and marketing and distribution, with an emphasis on collaboration and leveraging synergies.
But the individual asset management companies will remain as distinct entities and continue to run their investment strategies and organisational decisions under the respective boards and management.
Mr Goh Yew Lin, a Temasek director, will be appointed chairman of Seviora.
Mr Jimmy Phoon, now chief executive of Seatown Holdings International, will be CEO-designate of Seviora. He will hold both positions concurrently until a successor is appointed for Seatown Holdings International, Temasek said.
Mr Goh said in a statement: "The asset management industry is in a period of rapid change, driven by shifting investor preferences, evolving asset classes and large concentrated pools of capital.
"By bringing four successful but distinctly different asset management companies together, we see the opportunity to accelerate business growth through creation of scale, synergistic product offerings and greater investment in technology."
Mr Phoon added: "The formation of Seviora will enable the group to leverage capabilities of the asset management companies to build a leading Asia-based asset management group that provides access to a broad range of strategies.
"This new structure will offer existing and prospective clients a more integrated suite of products tailored to their needs."
The four existing asset management firms are recognised as specialists in their various product and strategy segments, noted Temasek chief investment strategist Rohit Sipahimalani.
"Bringing them together will allow the combined group to further strengthen and leverage skillsets and capabilities, and to build a larger platform for future growth in the asset management space," he said.
"In addition, the ability to allocate capital across strategies will enable Seviora to fund or seed new initiatives to better serve the evolving needs of investors."
The new structure is expected to be completed by the end of the year.
