Fri, Dec 02, 2011 - Page 11 News List

AllianceBernstein completes Taiwanese acquisition

By Crystal Hsu  /  Staff Reporter

AllianceBernstein has completed the acquisition of Taiwan International Investment Management (TIIM, 匯達投信) as the US asset manager looks to strengthen its presence in the domestic fund market, a Taipei-based executive said yesterday.

The New York-headquartered company struck a share purchase agreement on Sept. 6 with TIIM’s major shareholders and completed the deal on Wednesday, AllianceBernstein Taiwan managing director Derek Yung (翁振國) told a media briefing.

“AllianceBerstein Taiwan will expand its product line to boost its market share here,” Yung said.

The company manages 24 funds, including US high-yield bonds and India growth funds, company data showed.

Yung said the US group planned to create on-shore funds to demonstrate its commitment to Taiwan and groom local talent.

The Taiwanese branch expects to receive regulatory approval to launch funds as early as the second half of next year, Yung said earlier.

AllianceBernstein chief executive officer David Steyn said in a statement that the acquisition would increase its staff in Taiwan, allowing it to establish an even more competitive and professional management team to serve domestic clients. Steyn did not give any numbers.

AllianceBernstein holds a relatively positive view on the global economy, which could expand 2.8 percent next year, senior vice president and fixed-income specialist Paul DeNoon said.

“We don’t think there is need for the [US] Federal Reserve to introduce a new round of quantitative easing because the US economy is forecast to grow 3.5 percent next year,” DeNoon said.

DeNoon threw his weight behind US high-yield bonds on improving US corporate profits, although the market would remain volatile before European leaders find decisive solutions to the sovereign debt crisis.

AllianceBernstein aims to cut holdings in emerging currencies on expectations of easing monetary policies by their central banks, DeNoon said.

China’s decision on Wednesday night to slash its reserve requirement ratio is another indication of a loose monetary cycle, he said.

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