New York Life Investments Completes Acquisition of Dexia Asset Management
Expands Global Footprint into Europe and Australia
Assets Under Management Exceed $500 Billion Milestone
New York, February 3, 2014—New York Life Investments announced today that it has completed its acquisition of Dexia Asset Management, a leading international asset manager, with management centers in Brussels, Paris, Luxembourg and its investment boutique, Ausbil, based in Sydney, for EUR 380 million.
Dexia Asset Management joins New York Life Investments’ diversified family of investment boutiques, complementing its current capabilities in fixed income, equities and alternative investments and adds $100 billion in assets under management, bringing New York Life Investments’ total assets under management to $511 billion.
Naïm Abou-Jaoudé will continue in his role as chief executive officer and chairman of the Executive Committee of Dexia Asset Management and Paul Xiradis will remain chief executive officer of Ausbil. Yie-Hsin Hung, in addition to her current role as co-president of New York Life Investment Management and chairman of New York Life Investment Management International, becomes chairman of the Board of Directors of Dexia Asset Management. Naïm Abou-Jaoudé joins the Executive Committee of New York Life Investment Management International as vice chairman.
“Expanding our asset management business in Europe and Australia represents a significant growth opportunity for New York Life to become a key player in the global asset management arena, adding important scale and geographical diversity to our business,” said John Kim, vice chairman, New York Life. “As with our other boutiques, Dexia Asset Management will preserve the integrity of its investment processes, portfolio management teams and distinct culture, while at the same time benefit from the strength, resources and capital of New York Life.”
“The acquisition of Dexia Asset Management, a robust organization with a diverse array of products and broad distribution adds quality investment solutions for our clients on a global basis, and represents a milestone in the growth of New York Life Investments. We warmly welcome Naïm Abou-Jaoudé and his entire team to the New York Life family and look forward to fully supporting the firm’s future endeavors,” he added.
“I am delighted to take on the role of chairman of the Board, working with Naïm Abou-Jaoudé to bring New York Life’s significant resources to Dexia Asset Management,” said Yie-Hsin Hung, co-president of New York Life Investment Management and chairman of New York Life Investment Management International. “With the backing of New York Life, Dexia Asset Management has the opportunity to even better meet the needs of its clients with innovative products, strong performance, meticulous risk management and substantial resources, and do what it does best -- being an excellent investment partner to its clients.”
“With our expanded business, our clients now have access to the breadth and depth of European and Australian markets through best-in-class products, global capabilities and tremendous talent and insight on the ground,” Yie-Hsin Hung added.
Naïm Abou-Jaoudé, chief executive officer and chairman of the Executive Committee, Dexia Asset Management, said: “New York Life has the highest possible financial strength ratings currently awarded to any U.S. life insurer from all four of the major credit rating agencies. With this Fortune 100 institution underpinning our business, we are now better positioned than ever to provide continuity and stability to our clients and staff. We are also pleased to confirm our commitment to maintaining our local presence, platforms, teams and investment processes. We look forward to moving ahead with New York Life’s confidence and backing, to continue adding value for our clients in the years to come.”
New York Life Investments has been growing rapidly, more than doubling assets under management to $400 billion in the five years since the financial crisis by employing a successful multi-boutique approach. Third party assets have risen to $189 billion as of December 31st, 2013, from $68 billion at year end 2008. The investments business has become a vital part of New York Life, significantly expanding the company’s profile and its profitability and contributing to its financial strength. The Dexia Asset Management acquisition continues the strong growth of New York Life Investments.
Yie-Hsin Hung, Co-President, New York Life Investment Management; Chairman, New York Life Investment Management International; Chairman of the Board of Directors, Dexia Asset Management
Yie-Hsin Hung is the co-president at New York Life Investment Management. In this capacity, she is responsible for a number of the equity, fixed income, and alternatives focused investment boutiques. Ms. Hung is also the chairman of New York Life Investment Management International responsible for the firm’s investment management institutional activities and presence outside the U.S. She is also chairman of the Board of Directors of Dexia Asset Management. She joined New York Life in 2010 with more than 25 years of industry experience, having most recently served as senior advisor at Bridgewater Associates and managing director and global head of Strategic Acquisitions and Alliances at Morgan Stanley Investment Management. At Morgan Stanley, she also served as chief administrative officer, head of the firm’s Private Equity and Absolute Return businesses, and had responsibility for the business development effort of the Alternative Investments group. Prior to that, Ms. Hung was a managing director in Morgan Stanley’s Investment Banking division for a number of years, with a primary focus on real estate. Ms. Hung received a BS in Mechanical Engineering from Northwestern University and her MBA from Harvard Business School.
Naïm Abou-Jaoudé, Chief Executive Officer and Chairman of the Executive Committee, Dexia Asset Management; Vice Chairman, New York Life Investment Management International
Naïm Abou-Jaoudé is the chief executive officer and chairman of the Executive Committee, Dexia Asset Management since 2007 and the vice chairman of New York Life Investment Management International. Within this role he relies on a broad experience acquired in the financial sector, and more particularly 25-years’ experience in the asset management industry. Until end 2006, he was a member of Dexia Asset Management’s Executive Committee, in charge of Alternative Management and Structured Products. He joined Dexia Asset Management in 1996. Previously, he was a member of the Management Board, responsible for the Investment Management and Derivatives department at UBS Asset Management France and Alfi Gestion (companies respectively acquired by Dexia). He started his career as one of the partners at Transoptions Finance (subsidiary of Crédit Agricole-Indosuez). Naïm Abou-Jaoudé is member of the board of several asset management industry bodies and is a graduate of the Institute of Political Studies in Paris (IEP-Sciences Po). He holds a Masters’ degree in Economics and Finance (Université Paris II).
Paul Xiradis, Chief Executive Officer, Deputy Chairman and Founding Head of Equities, Ausbil
Paul Xiradis is the chief executive officer, deputy chairman and founding head of Equities at Ausbil Dexia Limited (“Ausbil”). He co-founded Ausbil in 1997 and has over 30 years experience in investment management across all investment disciplines. His formative investment years were spent in Westpac’s Investment Management Division where his responsibilities included the management of both superannuation and non-superannuation retail investment trusts. He progressed to become senior portfolio manager for Delfin and investment manager for the Mercantile & General Reinsurance Group in Australia in 1989. Mr. Xiradis joined Legal and General Asset Management in 1994, rising to become director of Australian Equities, where he continued his sound track record in equity management. In late 1995 BZW Investment Management approached him to accept an equity management position as Associate Director-Equities, a position he held until 1997.
About New York Life Investments
New York Life Investments, a wholly owned subsidiary of New York Life Insurance Company, is a leading investment management firm, with $411 billion in assets under management, as of December 31st, 2013. New York Life Investments ranks among the world's largest asset managers* and through its multiple-boutique investment structure, offers access to an array of fixed income, equities and alternative products for institutional and retail clients. New York Life Investments is also a leading provider of retirement plans for corporations, multi-employer trusts, and individuals, and is recognized as one of the nation’s top providers of guaranteed products to both the qualified and non-qualified markets.
“New York Life Investments” is a service mark used by New York Life Investment Management Holdings LLC and its subsidiary, New York Life Investment Management LLC.
*Source: New York Life Investments ranked 29th among the world’s largest money managers within Pensions & Investments, May 27, 2013. Rankings are based on total worldwide institutional assets under management for the year-end 2012. New York Life Investments assets include assets of affiliated investment advisers.
About New York Life Insurance Company
New York Life Insurance Company, a Fortune 100 company founded in 1845, is the largest mutual life insurance company in the United States* and one of the largest life insurers in the world. New York Life has the highest possible financial strength ratings currently awarded to any life insurer from all four of the major credit rating agencies: A.M. Best (A++), Fitch (AAA), Moody’s Investors Service (Aaa), Standard & Poor’s & (AA+).** Headquartered in New York City, New York Life’s family of companies offers life insurance, retirement income, investments and long-term care insurance. Please visit New York Life’s website at www.newyorklife.com for more information.
* Based on revenue as reported by “Fortune 500 ranked within Industries, Insurance: Life, Health (Mutual),” Fortune magazine, May 20, 2013. See http://money.cnn.com/magazines/fortune/fortune500/2013/faq/?iid=F500_sp_method%20 for methodology.
**Individual independent rating agency commentary as of 8/1/13.
About Dexia Asset Management
Over the past 20 years, Dexia Asset Management has built up a significant presence in Europe and across international markets. The company has established product manufacturing platforms in Brussels, Paris, Luxembourg and Sydney and has an experienced sales force covering Europe, the Middle East and Australia. With a team of some 500 dedicated employees, it currently manages $100 billion in assets as at December 31 2013. Delivering innovative investment solutions to institutional, retail and private investors across 25 countries, Dexia Asset Management’s multi-specialist skills cover five key areas of expertise: fixed income, equities, alternatives, sustainable investments and advanced asset allocation.
Further information can be found on www.dexia-am.com
About Ausbil Dexia Limited
Ausbil Dexia Limited, an investment boutique of Dexia Asset Management, is an Australian equities specialist with US$9.07 billion in funds under management, as of December 31, 2013. Established in April 1997, Ausbil’s core business is the management of Australian equities and emerging leader investment portfolios for major superannuation funds, institutional investors and master trust clients. During the past fourteen years Ausbil has been one of Australia’s highest performing equity specialist boutique managers and has demonstrated an impressive consistency in delivering superior returns through its style neutral process.
Further information can be found on www.ausbil.com.au.
New York Life Insurance Company
Dexia Asset Management
New York Life Insurance Company