NTUC Income taps Fullerton to manage US$23bn in assets

December 11 2017 by InsuranceAsia News Staff

Insurer NTUC Income (Income) has taken on Temasek-owned Fullerton Fund Management Company to manage assets valued at around US$23 billion.

Under the terms of the deal, Fullerton’s holding company, FFMC Holdings, will issue new shares to Income.

This arrangement will effectively give the insurer a significant minority stake in FFMC, with Temasek remaining as Fullerton’s majority stakeholder.

As both companies will remain as independent entities, the proposed transaction has not been called a merger.

If the deal is completed, the move will make Fullerton one of the biggest locally-owned asset management companies in Singapore.

A recent valuation showed that its assets under management reached more than US$40 billion.

According to Income chief executive Ken Ng, having a licensed management team means the insurer will get to “professionalise and leverage capabilities” of both parties and craft more value for policyholders.

The partnership is seen to create more opportunities to explore innovative investment products, the companies said.


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