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Mergers & Acquisitions

Bank of New York Wealth Unit Looking For Mergers to Grow

October 19, 2009 - Though Bank of New York Mellon Corp.'s wealth management revenue has slumped, the unit's head is touting its resilience and plotting an aggressive strategy through mergers and acquisitions. The business' revenues fell 10%, to $189 million, as of June 30, from a year earlier. But wealthy clients are continuing to invest with BNY Mellon Wealth Management, which has reported net inflows for 14 consecutive quarters.

Ameriprise Buys Columbia From BoA for Up to $1.2B

October 5, 2009 - Bank of America plans to sell its long-term asset management business, Columbia Management, to Ameriprise Financial for as much as $1.2 billion in an all-cash deal. As of June 30, Columbia has $165 billion in assets under management, $93 billion of which was in equity and $72 billion in fixed income. The cash business managed by Columbia is not included in the transaction.

Politics Could Slow Risk Control Overhaul

October 5, 2009 - NEW YORK - Regulatory officials are pondering significant changes to the way the U.S. oversees financial markets in the wake of last year's credit crisis and the failure to prevent Bernard Madoff's massive Ponzi scheme, but lawmakers will have to make some hard choices before any real changes can happen. Financial industry experts blame these failures on the way regulatory agencies operate in silos and fail to share vital information.

Finding the Opportunity of a Lifetime in the Financial Crisis

August 3, 2009 - Sometimes we seek out opportunities for change. Other times change is thrust upon us. Market conditions in the past 24 months have produced seismic shifts in the mutual fund industry, and several business drivers have emerged that will shape our industry's future. As asset managers, distributors, suppliers and others evaluate their next steps, these demands will drive strategies and shape new solutions. With change comes both risk and opportunity. For the nimble, thoughtful and resourceful, this set of challenging market conditions represents the opportunity of a lifetime.

Wirehouses Scramble as Advice Goes Independent

August 3, 2009 - Financial advisers have been going independent or switching wirehouses in record numbers since the economic crisis began at the end of 2007, and brokerages are scrambling for ways to get them and their loyal clients to come back. Large wirehouse firms lost 2.1% of the total market share in 2008, or almost $225 billion in client assets, according to a new study by Aite Group, titled 'New Realities in Wealth Management: Ready for the Sea Change?'

Wilmington Trust's CEO Takes Wait-and-See M&A Approach

July 27, 2009 - For anyone in a rush to snap up wealth management firms, or who thinks Wilmington Trust Corp. is poised for a buying spree, Ted T. Cecala says think again. The chairman and chief executive officer of Wilmington Trust strikes the profile of a lion in wait. He advises caution and talks up the risks of chasing deals in the current market, but he says the company will expand -- in time.

Money Management M&As Could Rebound

July 13, 2009 - While mergers and acquisitions among asset management companies were down significantly during the first half of 2009, many M&A experts predict this decline will flatten out or reverse by the end of the year, driven by renewed faith in the profitability of asset firms and banks' continued need to raise capital. 'Activity across financial services has decreased significantly because of the crisis, with asset management transactions down 35% by number,' said Eric Weber, managing director and chief operating officer at Freeman & Co. 'We expect financial industry deals to stay at these subdued levels as the industry plans how to compete in the future.'

Fidelity Places Big Bet On Unproven Channel

July 13, 2009 - Fidelity Investments aims to double its assets under administration in the next five years, and stepped-up sales through banks will be a major contributor, company executives said. Leading the bank sales initiative is Michael K. Clark, president of Fidelity Institutional Products Group, which offers investment products and clearing services to banks, broker/dealers, insurers, registered investment advisors and other financial intermediaries.

Bank Investment Units' Heads Get Pick of Advisers

April 6, 2009 - One shift in distribution strategy the financial crisis has caused, which fund sales directors should take note of, is that banks are looking far more attractive to a variety of advisers and more are hiring top talent. As the industry consolidates, many more bank and wirehouse brokers are on the move, especially those dislocated by big mergers. According to BrokerHunter.com, domestic openings for advisers listed on the site have remained level since September, at about 2,000. But hits to the site from advisers looking for new jobs have tripled during the same period, to 84,275.

John Hancock's Hartstein Aims for Growth Ahead

April 6, 2009 - While most mutual fund companies struggled in 2008, John Hancock Funds finished the year in solid standing, buoyed by a strong first half and careful strategic planning. President and CEO Keith Hartstein recently spoke with Money Management Executive's John Morgan about the key areas that drove Hancock's record $8.5 billion in sales, some regulations he would like to see changed and his outlook for the rest of 2009 and beyond.

Stretched Thin, Firms Hack Away at Expenses

April 6, 2009 - As mutual fund assets continue to decline and investors migrate to low-cost products, fund companies are struggling to make management fees stretch even farther. In addition to cutting staff, already lean firms will need to seriously consider automating or outsourcing various functions, merging smaller funds and eliminating some funds altogether. 'All fund groups have suffered substantial losses of assets under management, which has been reflected quickly in earnings,' said Burt Greenwald, president of the Philadelphia-based consulting firm B.J. Greenwald & Associates. 'Funds will obviously look at expenses as one area where they can exercise control. This is particularly true in publicly owned companies.'

Mercer to Acquire Callan For Undisclosed Sum

February 23, 2009 - Benefits consulting firms Mercer and Callan Associates are creating a mega investment consulting shop, as the two have announced plans to merge their operations. Mercer, a wholly owned subsidiary of Marsh & McLennan Cos. based in New York and with 18,000 employees, will acquire Callan, which employs 170, in an effort to strengthen its U.S. presence in the investment consulting space, as well as its position on a global scale. Callan is independently owned. The transaction is expected to close within the first quarter of this year, and the new firm will be known as Mercer, officials at both shops told IMW.

NewRiver Sues Morningstar for Espionage

February 9, 2009 - Mutual fund prospectus provider NewRiver is suing Morningstar for using Internet espionage to steal information from its patent-protected system. The lawsuit, filed Jan. 30 in Massachusetts commonwealth court, alleges Morningstar gained unauthorized access to NewRiver's web data warehouse last summer when the two companies were in talks to form a strategic partnership. The partnership did not pan out. NewRiver said it is seeking 'substantial damages.'

SourceMedia Editors Give Predictions for 2009

January 19, 2009 - The events that occurred in the financial services industry over the past year were once thought inconceivable. At this point, regulators are chomping at the bit to reverse how Wall Street does business, and investors are downright spooked. The editors of SourceMedia's business publications offer their views on how these dramatic shifts on Wall Street and in corporate America will impact businesses and investors this year.

Putnam Investments Restructures Equity Unit

November 24, 2008 - Stressing that the reorganization is not motivated by the financial crisis but a strong desire to improve accountability and, with that, performance, Putnam Investments Chief Executive Officer Robert Reynolds announced the firm is doing away with team-managed equity mutual funds. Instead, those funds will be run by single portfolio managers. In the process, 12 fund managers were let go last week, along with 17 quantitative research people and 18 others, for a total of 47 people dismissed.