RHB Investment Management (RHBIM) and Goldman Sachs Asset Management (GSAM) have signed an agreement to jointly develop fund management products for distribution to investors in Malaysia.
"Malaysia is a very exciting new market for us. I cannot think of a better way of launching our business here than partnering with a firm of RHB's strength, experience and wide distribution reach. Together with RHBIM, we will bring a broad range of new ideas to investors in Malaysia," said Oliver Bolitho, head of GSAM in Asia, talking to Finance Asia.
While the agreement does not specifically refer to structured products, industry sources say it is expected this may be the case in the future. GSAM may also develop products using RHBIM's capabilities for distribution outside Malaysia given RHB's expertise in the Islamic finance arena, said Bolitho. GSAM may work with RHBIM on products that it can then sell through its franchises in the Middle East and Asian countries with Muslim populations.
The deal will boost Goldman's presence in Malaysia, providing it with an established distribution network. The US firm already has a number of institutional clients and obtained a fund management licence (non-Islamic) in July earlier this year.
Goldman does not currently issue any structured products in Malaysia while SRP's Malaysian database lists five RHB tranche products, all 100% capital-protected funds, in addition to one continuous fund with 80% capital protection.
GSAM will work with RHBIM to develop funds for both RHB's institutional and retail businesses with the partnership to be focused more on developing retail funds for distribution through RHB's platform initially. The first products are expected in the first quarter of 2011.
Recently Goldman Sachs' investment banking division moved structured products veteran Stefan Bollinger to Hong Kong as head of pan-Asian private investor product group business, as part of a wider move to expand its structured products business in the region.
