Temasek Holdings on Oct 6, announced that it has established Seviora Holdings, a newly created asset management group that will provide access to a range of investment strategies across return profiles, asset classes and geographies.
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Seviora, which will be headquartered in Singapore, will serve as the operational holding company for four existing asset management companies currently wholly-owned by, or affiliated to Temasek.
The companies are Azalea Investment Management, Fullerton Fund Management Company, InnoVen Capital and Seatown Holdings International. Together, the group will have a combined asset under management (AUM) of about $75 billion.
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Under the newly-formed structure, Seviora will work with the component entities on areas such as product development as well as marketing and distribution, with emphasis on collaboration and leveraging synergies.
A dedicated management team, led by appointed chairman Goh Yew Lin and CEO-designate Jimmy Phoon, will oversee the group’s strategy and growth of AUM. The team will also drive capital allocation to meet business requirements and growth opportunities.
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Phoon is currently the CEO of Seatown Holdings International, and will hold both positions at the same time until a successor is appointed for Seatown Holdings.
The individual asset management companies will retain operational autonomy and continue to manage their investment strategies and organisational decisions. They will also remain as distinct entities and retain their existing branding.
“The asset management industry is in a period of rapid change, driven by shifting investor preferences, evolving asset classes and large concentrated pools of capital,” notes Goh.
“By bringing four successful but distinctly different asset management companies together, we see the opportunity to accelerate business growth through creation of scale, synergistic product offerings and greater investment in technology,” he adds.
“The formation of Seviora will enable the group to leverage capabilities of the asset management companies to build a leading Asia-based asset management group that provides access to a broad range of strategies,” says Phoon.
“This new structure will allow us to maintain and build on the brands and investment track records of each asset management company; and to offer existing and prospective clients a more integrated suite of products tailored to their needs,” he states.
Rohit Sipahimalani, Temasek’s chief investment strategist says, “Azalea, Fullerton, InnoVen and Seatown are recognised as specialists in their various product and strategy segments. Bringing them together will allow the combined group to further strengthen and leverage skillsets and capabilities, and to build a larger platform for future growth in the asset management space.”
“In addition, the ability to allocate capital across strategies will enable Seviora to fund or seed new initiatives to better serve the evolving needs of investors.”
Seviora is expected to be set up by the end of 2020.
