Amova Asset Management Expands in Southeast Asia via AHAM Capital

KUALA LUMPUR - Amova Asset Management, hailing from Japan, is set to broaden its reach in Southeast Asia with the help of Malaysia’s AHAM Capital. This collaboration aims to tap into various growth opportunities across the region.

Strategic Partnership with AHAM Capital

Stefanie Drews, the representative director, president, and CEO of Amova, expressed confidence in AHAM Capital's ability to lead this expansion due to its in-depth knowledge of the regional market. The Japanese company has already established a presence in Singapore and is looking forward to a proposed joint venture in Vietnam.

Drews shared at a media briefing on October 14 that AHAM Capital's significant role in this relationship is crucial as Amova aims to cement its position in Southeast Asia. “We would like to have a really significant footprint in that space,” she emphasized.

Future Growth Plans

This move is part of Amova’s ambitious growth strategy for the decade ahead, spanning from 2022 to 2032. The firm envisions a balanced approach between organic growth and acquisitions to enhance its business capabilities.

Southeast Asia has been pinpointed as one of six key areas targeted for expansion. Initially, Amova intended to strategize its growth by launching in Malaysia before moving to the Philippines, Indonesia, and Thailand, with Vietnam scheduled for later.

However, an opportunity arose due to the potential joint venture in Vietnam, prompting an acceleration of their plans. In August, Amova announced a partnership with BIDV Securities, affiliated with the state-owned BIDV bank in Vietnam. If approved by regulatory bodies, the venture will operate under the name BSC Amova.

AHAM's Robust Market Position

Amova currently holds an impressive stake in AHAM Capital, having acquired nearly 97.7% of the company as of June 30, a significant rise from just 20%. The shares were acquired from CVC Capital Partners, Lembaga Tabung Angkatan Tentera, and AHAM management.

Founded in 2001, AHAM Capital manages around RM110 billion (approximately US$27 billion) in assets, making it a robust asset and wealth management firm in Malaysia. Drews highlighted that the two firms’ longstanding relationship over the last 15 years has fostered mutual understanding, trust, and confidence in AHAM's corporate culture and operational processes.

Malaysia's Promising Market Landscape

Drews characterized Malaysia as a high-potential market against the backdrop of a burgeoning deposit base, a young population, and an evolving financial landscape with low product penetration.

Moreover, Malaysia’s strong regulatory framework and its leading position in the global Islamic finance sector—holding approximately 28% of global assets in Islamic fund management—further underscore its appeal to asset managers. In contrast, Saudi Arabia accounts for roughly 17%.

With AHAM Capital, Drews anticipates facilitating greater local access to various global investment strategies, particularly those centered in the US, thereby enhancing service capabilities for both retail and institutional clients.

Targeting Wealth Management

AHAM Capital does not intend to limit its focus solely on high-net-worth individuals but is also expanding its corporate and mass-affluent sectors. Esther Teo, the deputy managing director and chief fixed income officer of AHAM, reported that the firm manages around RM12 billion (about US$2.9 billion) in wealth for high-net-worth clients, indicating substantial potential for further growth.

Additionally, the corporate sector, which manages approximately RM38 billion in assets, serves various businesses through money market funds and short-term fixed-income solutions, establishing strong relationships that enhance AHAM's wealth management services.

AHAM’s progressive approach aims to sustain its distribution of products via local financial institutions while simultaneously enhancing its investment capabilities with Amova’s support. Drews mentioned that Amova intends to enrich AHAM’s offerings with a variety of global investment products and solutions managed from London, further strengthening their market presence.