Amundi continues to strengthen its Asian presence with the acquisition of KAF Group's fixed income business in Malaysia.

Amundi, the European asset management firm, continues to strengthen its position in Malaysia with the acquisition of a Kuala Lumpur-based fixed income company. 

The takeover of KAF Fund Management, a subsidiary of the Malaysian banking giant KAF Group, was done through Amundi Malaysia, its wholly-owned business in the country. In a statement, Amundi said that the acquisition is a natural step after six years of operating in the Malaysian equities market and four years in the sukuk industry. 

KAF Fund Management, an institutional fixed income specialist and retail fund manager, has around MYR4 billion ($1.2 billion) in assets under management as at 28 February 2013. Upon completion of the deal, Amundi Malaysia will take over and effectively manage more than MYR14 billion of assets.

Roslina Adbul Rahman, managing director of Amundi Malaysia, will take on the role of managing director of the enlarged company. Rahman reports to Jenny Sofian, chief executive in South East Asia and Australia. Thariq Ahmad, former CEO of KAF Fund Management, will become the senior advisor and head of fixed income strategies at Amundi Malaysia.

All key Amundi clients in South East Asia have been informed by the change, said the firm, and the move has also been approved by regulatory authorities. Amundi is one of the largest asset management firms in the world with more than €777 billion ($1.07 trillion) in assets under management.