NTUC Income, one of Singapore's largest insurers, and Fullerton Fund Management Company, a subsidiary of the government-owned investment holding company Temasek, yesterday announced a proposed strategic partnership to appoint Fullerton as the investment manager of a portfolio of Income assets estimated at S$23 billion (US$17 billion).
As part of the proposed partnership, FFMC Holdings, the holding company of Fullerton, will issue new shares to NTUC Income. Upon completion of the transaction, the insurer will own a significant minority stake in FFMC, while Temasek remains the majority shareholder. Completion of the proposed transaction is subject to regulatory approvals and other customary closing conditions.
The proposed strategic partnership, when completed, will establish Fullerton as one of the largest locally-owned asset management companies in Singapore, with its assets under management (AUM) increasing to over S$40 billion. The combined investment capabilities will lend strength and greater opportunities to explore innovative investment products and solutions for clients.
Mr Ken Ng, NTUC Income’s CEO, said: “As a responsible and forward-looking organisation, Income is always looking out for opportunities to create more value for our policyholders. We believe this proposed partnership with Fullerton is in our best interest to leverage economies of scale and tap the established and deep investment expertise of our combined investment capabilities to serve our policyholders better.”
Commenting on the proposed strategic partnership, Ms Png Chin Yee, Head, Financial Services, at Temasek, said: “We welcome Income as a new shareholder in Fullerton Fund Management Company. We are confident that the proposed partnership will further strengthen Fullerton’s position as an Asian and emerging market specialist, and deepen the capabilities that both organisations have to serve their client base.”
Ms Jenny Sofian, Fullerton’s CEO, said: “As an investment specialist with aspirations to be a leader in asset management, we are very excited about working alongside Income and leveraging the potential opportunities that this proposed partnership will bring. Our priority is to ensure the continued delivery of strong investment performance and the highest level of service to our clients.”
To ensure continuity in the management of both NTUC Income’s and Fullerton’s assets, relevant fund management personnel from the insurer will be transferred to Fullerton. The combined depth and experience of the investment team will enhance Fullerton’s competitive positioning. Both companies will benefit from operational synergies, as well as proven and complementary investment and management capabilities. The increase in scale will also complement the companies’ commitment to attract and retain investment talent.
Both firms will remain independent entities, guided and managed by their respective board of directors, following the completion of the proposed transaction.