Apr 24, 2013
Singapore/ Malaysia, April 22nd 2013 - State Street Corporation and AmInvest, one of Malaysia’s leading fund management companies, announced today that they have signed a contract for AmInvest to outsource its investment operations functions and custody services to State Street.
AmInvest is the new brand for the funds management business of AMMB Holdings Berhad, which manages both conventional and Shariah-compliant funds.
AmInvest, with assets under management (AUM) in excess of RM32 billion, is breaking new ground in Southeast Asia with a mandate of this size, which is designed to align AmInvest’s product and geographic expansion expectations with a global investment servicing provider.
AmInvest will outsource its investment operations functions including trade matching, investment accounting and client reporting, along with investment analytics and custody services. The outsourcing arrangement will ensure that, as AmInvest expands into overseas markets, its clients continue to enjoy the enhanced experience associated with one of the region’s leading financial services providers.
Commenting on the mandate, Mr Harinder Pal Singh, chief operating officer of AmInvest said, “This represents a landmark deal for our business as we strive to take our investment servicing to the next level and, in so doing, recognise the need to continually evolve our operational model to align it with our strategic goals to further build our AUM over the next five years.”
Mr Nick Wright, head of State Street’s Global Services and Global Markets businesses for Southeast Asia said, “Asian asset managers are increasingly outsourcing middle and back-office functions. The benefits of this include operational scale and can save them investing significant capital in technology and systems architecture. But most importantly it allows them to stay focused on what matters most to them– managing investors’ funds.
“Today’s volatile markets have increased the need for enhanced data management, particularly around transparency and flexibility. Clients want sophisticated analytical tools that can track their investment performance and monitor risk. This is a key capability that we can offer.
“This partnership with AmInvest reaffirms our commitment to invest in the Malaysian market as well as expand our investment manager operations outsourcing business across Asia.
“State Street is committed to providing AmInvest with the high level of service that its underlying clients expect. We will expand our current footprint in Kuala Lumpur with a dedicated local client servicing team to support this client,” added Mr Wright.
Re-disseminated by The Asian Banker