About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   depositrates.co.nz  |   landlords.co.nz
Last Article Uploaded: Tuesday, March 31st, 10:10PM
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
  • What is the value of CPD?
    “What all this discussion says to me is that there seems to be a lot of emphasis on doing CPD to meet the requirements of...”
    11 hours ago by Brent Sheather
  • What is the value of CPD?
    “David - so in your words " Where does a Risk Specialist AFA go for relevant CPD material? Company product launches don't...”
    1 day ago by gavin austin adviser business compliance
  • Clients complain about adviser fees
    “It is interesting to note that in the article, FSCL state they receive 2 or 3 similar complaints a month. Nothing wrong with...”
    1 day ago by Another AFA
  • What is the value of CPD?
    “I must say I like Gavin's idea of the " FMA to have some intestinal fortitude to go and audit him and publish the results",...”
    2 days ago by R1
  • What is the value of CPD?
    “With respect Pragmatic and JM, in this instance, G.Lindsay's point is fair. Where does a Risk Specialist AFA go for relevant...”
    3 days ago by dcwhyte
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 6.74 5.89 5.99 6.29
ANZ Special - 5.39 5.39 5.79
ASB Bank 6.75 5.99 5.99 6.39
ASB Bank Special - 5.59 5.39 5.59
BankDirect 6.75 5.99 6.09 6.39
BankDirect Special - 5.59 5.39 5.59
BNZ - Classic - 5.69 5.39 5.59
BNZ - Mortgage One 7.15 - - -
BNZ - Rapid Repay 6.74 - - -
BNZ - Std, FlyBuys 6.74 5.89 6.19 6.29
BNZ - TotalMoney 6.74 - - -
Lender Flt 1yr 2yr 3yr
Credit Union Auckland 6.70 - - -
Credit Union Baywide 6.45 5.95 5.99 -
Credit Union North 6.45 - - -
Credit Union South 5.75 - - -
eMortgage 6.04 6.15 6.69 7.19
Finance Direct 6.10 6.45 6.69 7.10
First Credit Union 6.45 - - -
General Finance 5.95 6.25 6.50 7.10
HBS Bank 6.65 5.69 5.39 5.69
HBS Special - 5.59 5.19 5.49
Heartland 6.70 7.00 7.25 7.85
Lender Flt 1yr 2yr 3yr
Heretaunga Building Society 6.70 5.70 5.40 -
Housing NZ Corp 6.74 5.70 ▼5.99 6.29
HSBC Premier 6.84 5.65 5.65 5.65
HSBC Premier LVR > 80% - - - -
HSBC Special - 5.29 5.29 5.29
ICBC 6.75 5.99 6.39 -
Kiwibank 6.65 5.69 6.09 6.29
Kiwibank - Capped - - - -
Kiwibank - Offset 6.55 - - -
Kiwibank Special - - ▼5.39 5.55
Liberty - - - -
Lender Flt 1yr 2yr 3yr
Napier Building Society 5.80 6.00 6.70 -
Nelson Building Society 6.95 6.15 6.60 -
NZ Home Loans 6.85 6.09 6.40 6.65
Perpetual Trust 7.70 - - -
Resimac 6.59 5.92 5.95 6.04
SBS Bank 6.65 5.69 5.39 5.69
SBS Bank Special - 5.59 5.19 5.49
Silver Fern 5.95 6.10 6.55 7.05
Sovereign 6.85 5.99 6.09 6.39
Sovereign Special - 5.59 5.39 5.59
The Co-operative Bank 6.70 5.59 5.39 5.59
Lender Flt 1yr 2yr 3yr
TSB Bank 6.74 5.70 5.70 6.00
TSB Special - - 5.35 5.60
Wairarapa Building Society 6.20 5.75 5.95 -
Westpac 6.59 5.99 ▼5.99 ▼5.99
Westpac - Capped rates - 6.74 6.99 -
Westpac - Offset 6.59 - - -
Westpac Special - - 5.39 5.89
Median 6.70 5.89 5.97 5.99

Last updated: 31 March 2015 11:13am

News Quiz

Who's ceo has just received the 2015 Women’s Empowerment Principles (WEP) CEO Leadership Award in a ceremony at the UN headquarters in New York, being only the second NZ ceo chosen for the honour?

Sovereign

Fisher Funds

Partners Life

Fidelity Life

MORE QUIZZES »

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