Singaporean insurer NTUC Income has inked a strategic partnership to appoint Fullerton Fund Management Company as the investment manager of its portfolio, subject to regulatory approvals.
The portfolio’s assets are estimated at SGD 23 billion ($17 billion), 70% of NTUC’s total assets under management of SGD 32.9 billion ($24.4 billion) at the end of 2016.
As part of the partnership, Fullerton’s holding company FFMC Holdings will issue new shares to NTUC Income, giving the latter a ‘significant’ minority stake in FFMC, while Temasek will remain the majority shareholder.
The deal is not a merger and both firms will remain independent entities, managed by their respective board of directors.
After the completion of the partnership, the assets under management of Fullerton will reach over SGD 40 billion ($29.6 billion).
Commenting on the partnership, Png Chin Yee, head of financial services at Temasek said it will help strengthen Fullerton’s Asian and emerging markets capabilities.
NTUC Income will transfer some fund management personnel to Fullerton as part of the deal.