Aberdeen buys Deutsche Asset Management assets as part of expansion plans in Australia
Singapore, 23 March 2007 - Aberdeen Asset Management PLC ('Aberdeen') announces today that it is buying up to US$11.3bn-worth of assets, formerly under Deutsche Asset Management Australia ('DeAmA'), for a top-most consideration of US$119.3m, as it seeks to expand its core equity and fixed income business in Australia.
The deal includes a number of mutual, insurance and segregated funds across asset classes.
UK-listed Aberdeen regards Australia as a distinct market within the region given its size, relative maturity and fast growth. Its strategy since opening in 2000 has been to market its skills to institutional and wholesale buyers, mainly through the sale of offshore-managed funds in areas such as emerging market and Asian equities.
By buying DeAmA assets it expects to gain a better-rounded product profile, and one consistent with the Group as a whole, which has expanded rapidly in Asia in recent years both organically and via acquisition.
In particular, the transaction reunites a fixed income team that used to work with what are now Aberdeen's core London and Philadelphia fixed income businesses, bought 18 months from Deutsche Bank AG. That 'transformational' deal saw Group assets more than double. Today Aberdeen manages US$149bn1 in total worldwide.
Singapore-based Hugh Young, who heads Aberdeen in Asia, affirmed:
"We've spent some time in Australia promoting our strengths and building relations in the core institutional channels, including rating agencies and consultants. With this deal we have the opportunity to expand on several fronts:"
"The fixed income part is exciting because Australia was omitted from the original deal with Deutsche, and that has proven highly successful. The DeAmA teams will bring additional expertise and improve our local interface with Group. Recent mandate wins in Australia in global fixed income provide momentum"
"On the equity side we have differentiated ourselves thus far by focusing on our overseas equity expertise. We now have scope to develop local products that are locally managed, alongside. Areas such as property also look promising, allowing us to introduce other skills within the Group."
Aberdeen's Australian assets amount to around US$2.9bn2 at present, which includes assets under advice in regional/global funds. The addition of DeAmA funds will lift this figure substantially.
1 at end Jan 07
2 at end Feb 07
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