BlackRock’s Italian U-turn leaves state on hook 9 May 2019 A specialist fund run by the world’s largest asset manager abruptly pulled out of a 720 mln euro rescue of ailing lender Carige. It’s a belated admission the plan was too risky and relied on rosy assumptions. Italian taxpayers once again face the risk of another costly bailout.
Deutsche asset unit deal will hinge on the how 24 Apr 2019 Suitors are circling the German bank’s money management division. Allianz or Amundi are interested and have deep pockets. And talks are underway with UBS’s asset manager, the FT reports. Deutsche’s problems make the structure of any transaction as important as the price tag.
Larry Fink keeps succession options wide open 2 Apr 2019 BlackRock is empowering regional managers and tapping a new executive to accelerate its push into private equity. Chief Larry Fink hopes the shakeup will reignite growth after a difficult year. They also leave him with a wealth of choices over who might one day take up his role.
U.S. asset managers target a new arms race 1 Apr 2019 Goldman Sachs and BlackRock are the latest investment firms to bulk up their wares in the $80 trln market for fee-based advisers. These are fast displacing commissions-based brokers in managing Americans’ wealth. And the business offers spoils across the money-managing spectrum.
BlackRock sees tech as an antidote to fee pressure 22 Mar 2019 The world’s largest investment shop is paying $1.3 bln for an alternative-asset management software firm. Boss Larry Fink gains heft in a booming private-equity market and bolsters a growing technology business. It’s a smart attempt to counteract price wars in stocks and bonds.
SEC is last activist that fund investors need 21 Mar 2019 The U.S. watchdog worries that consolidation and fee pressure may be hurting small asset managers, thereby reducing choice. For sure, BlackRock and Vanguard loom ever larger over the industry. But the main problem for rival funds is justifying the fees they charge already.
Standard Life Aberdeen gets token win in bank duel 19 Mar 2019 A UK tribunal has ruled in the fund manager’s favour in a dispute with Lloyds Banking Group over a 100 bln pound fund mandate. The contract was up in three years, and fees were slim. Even so, a cheque from the British bank will be a welcome boost for embattled CEO Keith Skeoch.
Oaktree investors get sharp end of the stick 13 Mar 2019 Brookfield is paying $4.8 bln for Howard Marks' and Bruce Karsh’s credit specialist, a 12 pct premium for a company that has underperformed for years. The Oaktree founders get to stay around with unlisted equity. It’s a lopsided deal, and a lesson in how asset management works.
Standard Life Aberdeen board rejig is just a start 13 Mar 2019 The embattled fund manager named Keith Skeoch as sole boss, ending its controversial co-CEO structure. But Martin Gilbert stays on as senior executive and vice chairman. With its 552 bln pound asset base still shrinking and the dividend insecure, governance remains suboptimal.
Blackstone’s Tradeweb inhibits post-IPO governance 7 Mar 2019 The unit, owned by the buyout firm’s Refinitiv, is going public, using proceeds to reduce the stake held by banks. Supervoting stock will augment Refinitiv’s already 54 pct control over the electronic-trading platform. That’s one reason investors may mark down Tradeweb’s worth.
L&G gets an awareness of its own mortality 6 Mar 2019 The UK insurer’s shares fell despite a hiked 2018 dividend. L&G’s bulk annuity business is still delivering, but margins are under pressure. The bright spot is a windfall from customers dying quicker – but that’s because its actuaries got their forecasts wrong.
Aviva’s new CEO is a vote against restructuring 4 Mar 2019 The UK insurer has appointed veteran Maurice Tulloch as chief executive. Aviva is overleveraged and undervalued, and selling its international operations offers a potential fix. But given doing so is hardly a no-brainer, an insider CEO may prefer more of the same.
Fund managers face a never-ending war on fees 26 Feb 2019 Vanguard is slashing costs on dozens of mutual and exchange-traded funds just months after Fidelity launched zero-fee products. JPMorgan lowered the returns it targets for its asset-management arm. Yet the business remains lucrative - which ensures cuts will continue.
GAM employees outperform shareholders 21 Feb 2019 The scandal-hit Swiss fund group has lost three-quarters of its value in a year. Senior management’s bonus bill has nearly halved. A desire to hang onto staff in a crisis explains the relatively generous payoff. In asset management, shareholders bear more of the risks.
Asset managers given climate-risk ultimatum 19 Feb 2019 Groups that signed up to the leading principles of sustainable investing may be in for a shock. From next year they must report on their global-warming risks or face expulsion. Forcing managers of over $40 trln of assets to live up to their word can be a powerful tool for change.
Blackstone cast-offs offer easy fit for Elliott 19 Feb 2019 The activist has snapped up a 6.1 percent stake in Dutch fund services group Intertrust. Its stock has languished since Steve Schwarzman’s private equity group listed it in 2015, due to disappointing margins. A cheap valuation means Elliott may not need to roll up its sleeves.
Private equity may not be good enough for Elliott 31 Jan 2019 Bulking up in buyouts is logical for Paul Singer’s hedge fund, which is better known as an activist. Yet market turmoil has hit established players like Blackstone and Apollo, and the industry is awash in capital. Coming late and small to the game is no formula for success.
Thruppence: Who wins by sponsoring UK book prize? 29 Jan 2019 Man Group has ended its support for the UK’s prestigious Booker award. The hedge fund decided there were worthier recipients of its 1.6 mln pound annual cheque. Luckily for aspiring authors, Breakingviews columnists have a handy shortlist of those who could step into the breach.
Busy activists navigate tricky currents 22 Jan 2019 They are rattling the cages of new targets like Pernod Ricard and Campbell Soup. But regular investors are more demanding, and private equity may muscle in, panellists told Breakingviews Predictions events this month. The test is whether active shareholders produce better returns.
New Jupiter CEO’s challenge is to fix niche model 22 Jan 2019 The $55 bln fund manager hired Andrew Formica as its new boss after a year of client departures and near 50 pct stock fall. It doesn’t help that it depends on fickle retail investors, in Brexit-torn Britain. Finding more institutional clients is a priority, but will take time.