Japan's Nikko Asset Management regards the acquisition of Suncorp's funds management arm, Tyndall, as an entry into the $1.3 trillion Australian market and is not planning to restructure the business after it gains control.
"It is not about re-engineering the company," Tyndall managing director Craig Hobart said.
"They are not trying to extract the short-term financial return. It is very much a long-term strategic play for them.
"We will grow based on our current strategic plan. There is no intention to reinvent ourselves in this transaction."
Nikko had been seeking an entry into the Australian market for some time and the acquisition of the $25 billion fund manager was a statement of commitment to the market, Hobart said.
"There is a whole raft of reasons why Nikko wants to get involved in Australia. There is a demand for dual assets and Australian dollar-denominated assets in Japan," he said.
"Nikko has raised several billion dollars of Australian-denominated assets in that market and we have that capability to manufacture that here. They have a great packing and distribution model in Japan."
Nikko was committed to both the fixed income and equity business, he said.
"We will retain the joint venture model of bonds and equities. The equity business has a growth profile and is only a third of the way into its maturity. It is certainly not full," he said.
"The fixed-interest business is obviously a fantastic business with growth opportunities in Asia."
Hobart has been acting managing director of Tyndall since the company's chief executive, Brett Himbury, left for Industry Funds Management at the beginning of this year.
Nikko has now appointed Hobart as the company's permanent managing director.
He said there were no plans to bring staff from Nikko to the Australian operations.
"There are no Nikko staff coming over to work in Sydney in our business or in any other cities in Australia. They will support us where we want support, such as the operational piece. Their model is very much around local for local," he said.
Suncorp is by far the largest client of Tyndall and has about $18 billion of its assets with the firm.
The sale agreement requires Suncorp to stay with the firm for at least another three years and Hobart said there were no indications Suncorp would withdraw its investments after that period.
"It is not just a sale for Suncorp - it is entering into a partnership," Hobart said.
He indicated there were no plans to manage any of Nikko parent company Sumitomo Trust and Banking's money.
"We would look into that possibility but the immediate opportunity would be through their clients, not Sumitomo directly," he said.
Nikko only recently became part of Sumitomo, which acquired the asset management business from Citigroup in July last year.
