Nikko Asset Management Co. Ltd (together with its subsidiaries, Nikko AM Group) - one of Asia’s largest asset managers – has reached an agreement to transfer its management company (ManCo) in Luxembourg to FundRock Management Company S.A. (“FundRock”), a subsidiary of Apex Group Ltd (“Apex Group”). Apex Group is the leading global provider of financial services with over 13,000 employees globally.

Nikko AM Group offers active investment management across equity, fixed income, and multi-asset strategies, with a Luxembourg range of funds that comprises of three Undertakings for Collective Investment in Transferable Securities (UCITS) umbrella funds and one Reserved Alternative Investment Fund (RAIF) in Luxembourg with total assets of over USD $7bn which are all supported by its in-house management company in Luxembourg. By outsourcing management company services to Apex Group, Nikko AM Group can concentrate on its core focus- delivering investment outperformance to its clients.

The transfer agreement includes the sale of Nikko Asset Management Luxembourg S.A. to Apex Group. Following this, FundRock Management Company S.A., Apex Group’s Super ManCo in Luxembourg for UCITS and other financial asset funds, will handle management company services. FundRock currently oversees over USD $112bn in assets under management. Fund distribution activities are not part of the transaction and will remain with Nikko AM Group and its subsidiaries.

Apex Group offers a global single-source solution providing all services required across the entire value chain of the business via one convenient and efficient relationship. The partnership with Apex Group will also bring the following key benefits to Nikko AM Group and its clients:

• Focus on core competencies:The transaction will allow Nikko AM Group to focus on its core-competence, portfolio management, and leave the increasingly complex administrative and regulatory aspects of regulated fund management to FundRock.
• Enhanced efficiency:Considering its highly streamlined and automated operations for liquid assets in Luxembourg, FundRock Management Company S.A.  is able to offer high quality services at a very competitive cost that can otherwise only be achieved with large ManCos.
• Investment platform capability:Harnessing the resources of FundRock, Nikko Asset Management can focus on growing its fund business globally with the peace of mind that quality and costs are under control - no matter how the markets and fund assets evolve.

Peter Hughes, Founder and CEO of Apex Group, said:“Apex Group is the leading global financial services provider offering a full suite of services to the industry. Our expertise in management company services will provide Nikko AM Group with the scalability needed to thrive in today’s competitive market. We look forward to embarking on this journey together and to delivering exceptional value to Nikko AM clients.”

Rob Bluzmanis, Chief Executive Officer of Nikko AM Europe Ltd., said:“This agreement to transfer our Luxembourg-based Management Company to Apex Group ensures that our clients will continue to receive the highest level of service while allowing us to focus exclusively on providing world-class investment management. This transaction further strengthens our ability to scale our funds business worldwide, a key pillar of our global growth plan. We look forward to a successful collaboration with Apex Group.”