About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   depositrates.co.nz  |   landlords.co.nz
Last Article Uploaded: Tuesday, July 7th, 5:38PM
rss
Latest Headlines

Urge to merge questioned

Friday, December 14th 2001, 7:03AM
Firms buying asset managers are paying too much for less profitable firms, and in most cases their new subsidiaries wind up growing more slowly than their peers, according to the latest report from international consulting group Cerulli.

In its latest report, Targeted Perspective: M&A in Global Asset Management, Cerulli examines asset-gathering strategies used by the largest practitioners in the global fund management industry, which oversees nearly US$34 trillion in assets under management.

The research’s particular focus is on more than 300 M&A transactions in fund management since 1990, including a proprietary analysis of more than 60 specific transactions to determine post-transaction asset under management growth rates.

Cerulli found that about 65% of the US target firms analysed failed to grow faster than the industry, in terms of assets under management, after a transaction. Even worse, roughly half of the firms that trailed industry benchmarks after the transaction were actually surpassing industry growth rates before they were bought.

In fact, acquisitions only transformed laggards into outperformers—ie: transformed their growth rates from below-median to above-median—in 11% of the cases.

Organic growth remains the only time-tested way to steadily grow an asset management firm, Cerulli says. The growth rates for organic-growth firms in the US for the seven years ending December 2000 is 20%, compared to 15% for the entire US industry.

Cerulli’s research yielded similar conclusions regarding British targets of fund management mergers and acquisitions.

« Quality of hedge managers decliningSovereign takes regulation bull by the horns »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
  • QROPS now trapped in KiwiSaver funds
    “Can anyone spot the "enlightened self interest" of the allegedly QROPS compliant non-KiwiSaver scheme who gouges 4 or 5%...”
    3 hours ago by Mr Mojo
  • Obituary - Bob Edwards
    “Bob always worked for improved services, support and terms for the members of the Triple A with the Insurance companies and...”
    4 hours ago by T
  • Advisers may miss their chance: Cortesi
    “A small step an adviser can take right now to improve access to professional advice is to promote consumer access to their...”
    5 hours ago by Stuart Ayres
  • Why Dealer Group QFEs isn't a far-fetched idea
    “The concept of a DG performing as an agent of the FMA monitoring RFAs might have merit, but, the QFE model is not the way...”
    7 hours ago by Graeme Lindsay
  • FMA targets investor knowledge
    “So it looks as if the FMA are going into giving financial advice in competition with professional advisers. Will the FMA...”
    24 hours ago by traveller
Subscribe Now

Weekly Wrap

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 6.49 5.10 5.59 5.59
ANZ Special - - 4.99 -
ASB Bank 6.50 5.49 5.49 5.75
ASB Bank Special - ▼4.89 5.10 5.39
BankDirect 6.50 5.49 5.49 5.75
BankDirect Special - ▼4.89 5.10 5.39
BNZ - Mortgage One 6.90 - - -
BNZ - Rapid Repay 6.49 - - -
BNZ - Special - - 4.99 -
BNZ - Std, FlyBuys 6.49 5.19 5.39 5.29
BNZ - TotalMoney 6.34 - - -
Lender Flt 1yr 2yr 3yr
Credit Union Auckland 6.70 - - -
Credit Union Baywide 6.45 5.75 5.75 -
Credit Union North 6.45 - - -
Credit Union South 6.45 - - -
Finance Direct 6.10 6.45 6.69 7.10
First Credit Union 6.45 - - -
HBS Bank 6.39 5.39 5.39 5.39
HBS Special - 4.99 4.99 4.99
Heartland 6.70 7.00 7.25 7.85
Heretaunga Building Society 6.45 5.40 5.40 -
Housing NZ Corp 6.74 5.70 5.99 6.29
Lender Flt 1yr 2yr 3yr
HSBC Premier 6.60 4.95 4.95 5.40
HSBC Premier LVR > 80% - - - -
HSBC Special - 5.29 5.29 5.29
ICBC 6.75 5.99 6.39 -
Kiwibank 6.40 5.39 5.49 5.69
Kiwibank - Capped - - - -
Kiwibank - Offset 6.40 - - -
Kiwibank Special - 5.09 4.99 5.39
Liberty - - - -
Napier Building Society 6.50 5.80 6.70 -
Nelson Building Society ▼6.70 ▼5.65 ▼5.95 -
Lender Flt 1yr 2yr 3yr
NZ Home Loans 6.85 5.49 5.49 6.29
Perpetual Trust 7.70 - - -
Resimac 5.84 5.60 5.65 5.79
SBS Bank 6.39 5.39 5.39 5.39
SBS Bank Special - 4.99 4.99 4.99
Sovereign 6.60 5.49 5.10 5.75
Sovereign Special - ▼4.89 5.10 5.39
The Co-operative Bank 6.45 5.15 4.99 5.35
TSB Bank 6.49 5.45 5.49 5.75
TSB Special - - 4.99 5.40
Wairarapa Building Society 6.20 5.75 5.95 -
Lender Flt 1yr 2yr 3yr
Westpac 6.40 5.49 5.49 5.59
Westpac - Capped rates - 6.74 6.99 -
Westpac - Offset 6.40 - - -
Westpac Special - - 4.99 -
Median 6.49 5.45 5.40 5.40

Last updated: 3 July 2015 8:24am

News Quiz

The maximum remuneration model for Australian life insurance advisers is to be set at what?

Upfront 40% + trail 20%

Upfront 50% + trail 10%

Upfront 50% + trail 20%

Upfront 60% + trail 10%

Upfront 60% + trail 20%

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com