Singapore-based Javelin Wealth Management is set to buy the fund management business of Binjai Hill Asset Management (BHAM).
As part of the transaction, Justin Kendrick, the principal and founder of BHAM, will join Javelin as its new chief investment officer, International Adviser has reported.
The details of the transaction were not disclosed but according to Stephen Davies, CEO of Javelin Wealth Management, the acquisition will take effect in the first quarter of 2014.
Davies added that the decision to buy is to expand the firm’s product and service offering in order to differentiate it from the Singaporean private banks and financial advisory businesses in Singapore. The changes aim to ensure higher standards among advisers, greater transparency, and better tailoring of advice to suit individuals’ needs.
International Adviser reported that the CMS license will permit Javelin, which was formerly licensed by the MAS as a financial adviser, to provide its clients with in-house discretionary asset management and fund management services, in addition to its existing advisory services.
The new service offering will be limited to accredited investors whose net personal assets exceed SGD2 million (US$1.6 million).
"With our new license, our clients can now choose between our existing advisory offering, and our new discretionary portfolio management service," Davies added.
Currently, Javelin has around US$80 million in assets under advice, and around 72 individual clients. The acquisition of the BHAM funds and its team will increase firm assets in early 2014 to US$100 million.