KUALA LUMPUR: Kenanga Investors Bhd (KIB), the asset management arm of Kenanga Investment Bank Bhd, has completed its business consolidation exercise with its wholly owned subsidiary, Libra Invest Bhd (LIB).
Effective November 29, 2019, KIB obtained the High Court of Malaya’s approval to transfer identified assets, liabilities and undertakings of LIB to affect the aforesaid transfer.
Consequently, KIB will assume the role of Investment Manager for the funds that will be placed under KIB’s suite of fund offerings. Twelve retail and four wholesale funds of LIB were vested over to KIB.
Back in July, KIB completed the acquisition of 100 per cent equity stake in LIB in accordance with the conditional share purchase agreement it had entered with LIB’s then holding company, ECM Libra Financial Group Bhd.
“We have successfully concluded the harmonisation exercise which has seen a smooth transition in terms of critical aspects such as customer service, back-end operations and system migrations as at today,” said KIB executive director and chief executive officer Ismitz Matthew De Alwis.
Following this, KIB’s total asset under management (AUM) has increased to approximately RM13.2 billion, including the AUM of its other wholly-owned subsidiary, Kenanga Islamic Investors Bhd (KIIB).
“This has been one of the more significant merger and acquisition exercises in a long time within an industry which has been displaying signs of a slowdown amid an increasingly challenging macroeconomic environment,” remarked De Alwis.
LIB is known for its strength within the fixed income class due to its active portfolio management strategy, as opposed to a buy-and-hold approach while KIB has consistently been recognised for its forte in equities.
De Alwis is confident that with the consolidation, KIB would be able to harness and convert these newly acquired resources and capabilities into an expanded suite of product offerings, new business lines, cost efficiencies and enhanced distribution strength following the exercise.