KUALA LUMPUR: RHB Asset Management Sdn Bhd (RHBAM), a newly formed merger between RHB Investment Management Sdn Bhd with OSK-UOB Investment Management Bhd, aims to increase its Asset Under Management (AUM) to RM100 billion by 2018 from the current RM40.1 billion.

The newly merged asset management business, branded RHB-OSK and led by Managing Director/Group Asset Management Regional Head Eliza Ong, said the AUM target would be achieved through organic growth, strategic partnership tie-ups and also acquisitions.

"In line with the RHB Banking Group's regional aspiration, RHBAM also targets to grow 40 per cent of revenue contribution from Asean and China region by 2020 from its current nine per cent contribution," Ong told a press conference here today.

Ong said RHBAM is looking at countries it is already operating in, such as Indonesia and Hong Kong, for expansion, and is also looking at entering China and Taiwan.
The group's regional presence now spans eight countries -- Brunei, Cambodia, Indonesia, Hong Kong, Malaysia, Singapore, Thailand and Vietnam.

She added the group is currently in talks with several parties over strategic tie-ups and acquisitions.

RHB Investment Bank Bhd Managing Director Mike Chan said a bank-backed institution like RHBAM has the capacity to grow outside Malaysia.

"In Malaysia, we're among the largest. In terms of growth, we are looking at overseas expansion," he said.

Meanwhile, RHB Islamic International Asset Management Bhd (RHBIIAM), formerly known as OSK-UOB Islamic Fund Management Bhd, has also merged with RHB Islamic Asset Management Sdn Bhd.

RHBIIAM Chief Executive Officer Md Noor A Rahman said the company targets to be in the top 10 ranking globally by 2018.

"Headquartered in Malaysia, the Islamic asset management is currently ranked fourth in terms of retail and targets to move to the top three position in the country by 2018 with an AUM target of RM10 billion," he added.

Both RHBAM and RHBIIAM are anchored by RHB Banking Group, with an asset base of close to US$60 billion and a heritage that spans 100 years.

"This merger is a significant milestone as we strive to become an outstanding Asean fund house with Asian capabilities.

"Asset management is one of the core business pillars in the merged investment bank," Ong said, adding that the combined strength would enable them to offer a wider range of products and services as they expand their business and investments regionally. -- Bernama