GLOBAL - Nearly 70% of all asset management merger and acquisition activity in the third quarter were a result of banks shedding their asset management arms, data by Jefferies Putnam Lovell showed.
Examples included Bank of America's US$1bn sale of its Columbia Management business to Ameriprise and Sumitomo Trust & Banking's US$844m acquisition of a 64% stake in Nikko Asset Management.
Jefferies managing director Aaron Dorr said: "As larger financial institutions refocus on strategic strengths, we expect they will continue to separate asset management distribution from manufacturing, keeping the former and seeking solutions for the latter businesses."
The firm tracked 38 deals in the third quarter of the year, down from 66 the same time last year. However, the amount of assets transacted reached $749bn, up from $728bn a year earlier.
For the first nine months of the year, there were 113 deals completed, down from 174 deals a year earlier.
The Ameriprise and Sumitomo deals topped the five largest deals for the quarter. The remaining largest deals were Artio Global Investor's $650m initial public offering, Pacific Century's $500m acquisition of AIG's asset management business and Macquarie Group's $428m acquisition of Delaware Management from Lincoln Financial.
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Smaller FTSE 350 defined benefit (DB) schemes were nearly 15 percentage points less well-funded than larger schemes in 2017, according to a Goldman Sachs Asset Management (GSAM) analysis.
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