Maybank AM to grow AUM by up to RM210m via Schroder tie-up

Its partnership with Schroder Singapore is to develop specialist investment solutions for the local sophisticated wealth market


Maybank Asset Management Group Bhd (Maybank AM) is expected to see growth in its assets under management (AUM) by up to US$50 million (RM210 million) in two years, via its partnership with Schroder Investment Management (Singapore) Ltd (Schroder Singapore) to develop specialist investment solutions for the local sophisticated wealth market.

The long-term strategic collaboration will be initiated via the Global High Dividend Equity Portfolio and the Global High Conviction Portfolio, to be launched in November 2018.

Speaking to reporters at the AUM launching in Kuala Lumpur yesterday, Maybank AM CEO Badrul Hisyam Abu Bakar said the portfolios will be developed over the next 12 to 24 months.

“Given that sentiment is quite weak now, we’ll be happy if we can raise between US$30 million and US$50 million in AUM, through a combination of a few clients,” he added.

As at the end of September 2018, Maybank AM’s AUM stood at RM33.7 billion. The group has entities across Malaysia, Singapore and Indonesia offering fund management services for conventional and Islamic assets.

Both solutions, which will be offered to sophisticated investors, will be managed by Maybank AM’s unit, Maybank Asset Management Malaysia Sdn Bhd, while Schroder Singapore will act as the investment advisor.

The partnership will leverage on Maybank AM’s regional footprint and Schroder Singapore’s global expertise in recognition of growing demand for sophisticated, outcome- oriented global investment solutions — particularly among high-net-worth individuals.

“We’re based in South-East Asia, so our coverage is quite limited, therefore with the partnership, we can offer more global exposure. It’s important for investors to have resources on the ground when
managing this kind of portfolio,” Badrul Hisyam said.

Under the partnership, the group also plans to launch at least two to three more funds in 2019, potentially catering to retail and institutional investors as well.

The two parties will continue collaborating to co-develop solutions across other asset classes next year, including Shariah-compliant investments and private assets.

“We’re looking at rolling out the Shariah-compliant offering by the second half or third quarter of 2019,” Badrul Hisyam said.

The Global High Dividend Equity Portfolio is designed for investors eyeing both investment growth and income with an investment horizon of three to five years.

As an absolute return-focused offering, its concentrated portfolio consists of 20 to 30 liquid stocks with sustainable dividend yield of 5%.

Likely companies under the portfolio include REITs (real estate investment trusts), concessionaires, large consumer players, and other market leaders in monopolistic-like positions with stable revenue and predictable cashflows.

Meanwhile, the Global High Conviction Equity Portfolio is tailored for investors seeking to achieve capital appreciation over an investment horizon of three to five years.

The offering, which is also absolute return-focused, has a concentrated portfolio containing a maximum of 20 investment ideas that provide exposure to favoured long-term structural themes, such as technological disruption and global ageing populations.