Deutsche Bank has been given final regulatory approval for the acquisition of a 60% interest in Far Eastern Alliance Asset Management. The bank will buy the stake in the fund management company from the current owners û AllianceBerstein and the Sun Hung Kai Group.

A former COO at the investment management business says the model was not profitable for Alliance, which had been planning to exit the venture for quite some time. Alliance will, however, hold onto its distribution portion, which is run separately from the Far Eastern venture, given that the brand is now one of the strongest in offshore investments on the island.

Following the formal acquisition, the fund venture will be renamed Deutsche Far Eastern Asset Management. It will be jointly owned by Deutsche Bank and the Far Eastern Bank, a subsidiary of TaiwanÆs Far Eastern Group û a conglomerate with business interests ranging from cement, hotel, construction to petrochemicals and an airline that has recently filed for bankruptcy protection.

Rex Chou, a former senior vice-president at Schroders Securities Investment Consulting in Taiwan, has been appointed as CEO of the new fund venture. Prior to Schroders, Chou held business development and sales roles at HSBC Asset Management and Fidelity in Taiwan.

Apart from building up a retail presence, Chou will be targeting outsourcing opportunities from the islandÆs $182.87 billion in assets of public funds and insurance conglomerates.

"There is considerable potential working with our partners to offer further choice and new investment opportunities for Taiwanese investors. This will include supporting the introduction of further innovative global funds and alternative investments through Deutsche Bank's market-leading asset management brands û DWS Investments and RREEF Alternative Investments," Chou says.

ôThe business aims to leverage the global investment and business management expertise and innovation of Deutsche Bank's asset management division as well as building on the well-established local platform and professionals of Far Eastern Group,ö he adds.