An ambitious goal - C-SUITE EXCLUSIVE - Magazine | Asia Asset Management

Teng Chee Wai, founder and group managing director of Malaysia’s Affin Hwang Asset Management, has long resisted the temptation to expand abroad...

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,Teng Chee Wai ,Affin Hwang Asset Management ,Ounder And Group Managing Director Of Malaysia Amp Rsquos Affin Hwang Asset Management ,As Long Resisted The Temptation To Expand Abroad ,Eeing It As Too Riskya Move But With European Private Equity Firm Cvc Capital Partners Coming On Board Asa Major Shareholder ,E Is Now Prepared To Give Ita Shot Amp Ldquoi Have Mulled Over This Topic For Ten Years ,Mp Rdquo Teng Tells Asia Asset Management In An Interview ,Xplaining Why He Was So Hesitant To Look Beyond Local Borders Amp Ldquoi Have Various Shareholders Asking Me Lsquo Don Rsquot You Think Of Regionalisation Rsquoi Resisted It Because Is Not Easy ,Mp Rdquo He Says Amp Ldquo If You Look At All The Local Asset Managers ,Here Are Not Many Success Stories Most Of Them Have Closed Down Their Business Overseas And Come Back To Concentrate On The Local Market Amp Rdquo Cvc Rsquos Entry Has Shifted His Thinking Ultimate Goal Now Is Ldquo Try Use Malaysia Asa Base Builda Southeast Asian Asset Management Powerhouse Key Word Lsquo Rsquo ,Ecause We Know It Is Not Going To Be Easy Just Because Area Significant Player In Malaysia ,Oesn Amp Rsquot Mean We Can Go To Other Markets And Achieve The Same Success You Are Going Be Just Another New Kid On Block Will Have Compete With Global Players ,Mp Rdquo He Explains Believes The Company Can Leverage On Cvc Amp Rsquos Regional Network To Gain Access More Expansion Opportunities Nbsp Ldquo So ,Hopefully ,Five Years From Now ,Ou Will See That Affin Hwang Asset Management Not Just Bea Local Fund House We Hope It Have Some Regional Presence With Ourselves Working Like Minded Independent Managers Within Southeast Asia ,Mp Rdquo He Says According To Teng ,He Traditional Way Of Expanding Overseas By Acquiringa Foreign Entity And Taking Full Control Doesn Amp Rsquot Work Nbsp Acquirers In Such Instances Are Typically Seen As Outsiders ,Nd It Amp Rsquos Often Difficult For Them To Localise Their Products And Services May Also Be Hard Secure Government Investment Mandates Indeed ,Eng Amp Rsquos Expansion Plans Do Not Include Majority Ownership Asa Prerequisite Ldquo It Is So Much About Us Needing To Have Control Having The Right People And Team That Shares Same Values Passion ,Mp Rdquo He Says Amp Ldquo We Can Then Provide Them With The Investment Framework And Support ,Nd They Can Develop The Business And Strategy On Their Own Amp Rdquo But Company Will Be Selective With Expansion Ldquo Some Of Markets ,Such As Singapore ,Ay Not Be Worthwhile Going To As It Is Too Crowded But For Markets Like Vietnam And Indonesia ,E May Have Some Opportunities There ,Mp Rdquo He Says Checking All The Boxes Cvc Bowed In Asa Shareholder At Beginning Of Year Luxembourg Based Firm Announced January That One Its Asia Funds Is Buying 68 35 Amp Ndash 63 From Controlling Affin Hwang Investment Bank And 5 Senior Management Asset Company Fora Total 1 54 Billion Ringgit Us 367 Million Cash Nbsp Teng Team Rsquos Shareholding Will Be Whittled Down To 4 65 After Sale Deal Pending Regulatory Approval ,Nd The Company Amp Rsquos Name Will Be Changed Once It Gets Green Light ,Ikely This Year Amp Nbsp The Winds Of Change Had Been Blowing Fora While In December 2020 ,Loomberg Reported That Affin Bank ,He Parent Of Affin Hwang Investment Bank ,As Considering An Initial Public Offering Of The Asset Management Unit According To Teng ,Here Was Amp Ldquo Numerous Interest Rdquo From Potential Investors To Be Fair All Shareholders ,E Have To Consider When There Amp Rsquos Strategic Interest That Comes Our Way ,Mp Rdquo He Says Lists The Three Main Areas Company Looked At In Deciding Which Offer To Accept First Was Business Continuity Amp Ndash Ensuring That New Shareholder And Existing Management Team Were Aligned On How Had Be Run Nbsp Secondly ,He New Shareholders Had To Believe In Affin Hwang Asset Management Amp Rsquos Culture ,Hich Took Decades To Build And Thirdly ,Hey Needed To Have The Ability Make Company Better Than It Is Amp Nbsp Took Overa Year Pick New Shareholder Cvc Was Chosen As Ldquo Ticked All Three Boxes Rdquo ,Eng Says Amp Ldquo Of Course ,T Also Boils Down To Price Amp Rdquo Formula For Success Teng Set Up Affin Hwang Asset Management 21 Years Ago When He Returned Malaysia After Giving His Job As General Manager Of Investments At Overseas Assurance Corporation In Singapore Says There Was No Short Cut Makinga The Company Established 2001 ,T Achieved The First One Billion Ringgit Of Assets Under Management Milestone Within Three Anda Half Years Grew To 10 By 2011 ,Nd Increased Another Eight Fold To More Than 80 Billion Ringgit As Of End 2021 It Amp Rsquos Now The Third Largest Asset Manager In Malaysia Teng Highlights Management Team Free Rein Run Company Asa Key Factor For Success Ldquo We Are Given Freedom And Trust By Our Shareholders Build Business Best Ability ,Mp Rdquo He Says Amp Nbsp Also Points To The Management Team Rsquos Ldquo Clear Focus Of Putting Clients Rsquo Interest First There Are Periods Time When Market Condition Is Just So Tough Instead Focusing On Growing Revenue Or Profitability ,E Focused On Guiding The Clients Through Very Volatile Period ,Mp Rdquo He Says Teng Also Touched On The Importance Of Environmental ,Ocial And Governance Factors In Investing ,A Journey That Affin Hwang Asset Management Began Last Year Amp Nbsp Ldquo We Builta Team Of People Who Can Do Esg Screening ,Nd Incorporate Esg Into Our Investment Process ,Mp Rdquo He Says Amp Ldquo Do We Have The Perfect Esg Screening No But As Time Goes By ,T Will Evolvei Think In Ten Years ,Fa Company Does Not Have Any Esg Framework In Place ,Hey Will Not Be Able To Attract Any Capital ,