The managing director of Aberdeen Asset Management Asia has not ruled out further acquisitions in the Asia region on the back of the global takeover of Credit Suisse Asset Management’s traditional business.
Hugh Young, managing director of the Aberdeen group’s regional head quarters (Aberdeen Asia) based in Singapore, and group head of equities, said he would consider growing the Asia business via acquisition but currently has no plans to do so.
"The short answer is yes,” he said, when asked if he was open to further acquisitions in Asia post-CSAM integration.
“We have only generated two [acquisitions] out of Asia – EquitiLink in Australia and Schroders in
Thailand. Generally though, I prefer to build the business organically.”
Aberdeen Asia has greenfield sites in Malaysia, Tokyo and
China, and Young said he believed it was easier to cultivate the culture of a business when it was built from scratch.
He said Aberdeen might look to expand its property footprint in Asia by going direct over time.
“Property has not yet been fully rolled out in Asia,” he said, describing the establishment of
Aberdeen’s first Asian fund of property funds (AIPP Asia) in October 2006 was a “baby step”.
Aberdeen subsequently launched a second fund of property funds in 2007.
Last week Aberdeen announced it would internally manage the international equity funds, shortly to be acquired from Credit Suisse, using its own bottom-up, fundamental investment process and global equity team. The manager from which it will take over, Capital International, last week announced that Pinnacle Investment Management would administer and distribute two new funds to Australian retail investors, in a bid to retain as much as possible of what’s understood to be $2 billion under management.
Young co-founded Singapore-based Aberdeen Asia in 1992, having been recruited in 1985 to manage Asian equities from
Since then he has built the company into a US$33.9 billion (A$48.5 billion) manager, making it one of the largest managers of regional equities globally.
Singapore HQ employs over 100 staff and has 25 investment managers stationed across the region, with research/investment offices also in Australia, Hong Kong, Japan, Malaysia and
The Hong Kong office was acquired in 1998 when the
Aberdeen group bought Aetna Insurance. Equitilink in Sydney was purchased in 2000, and when Schroders pulled out of a joint venture in Bangkok with local partners in 2002, Aberdeen took over the partnership and in 2005 acquired 100 per cent control, making it the first 100 per cent foreign-owned investment manager in