trending Market Intelligence /marketintelligence/en/news-insights/trending/8m2c8oG7G5O-gHbqz_drkg2 content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

SEC to explore ripple effects of asset management industry's M&A craze

Street Talk - Ep. 64: Coronavirus jumpstarts digital adoption

Street Talk Podcast

Street Talk - Ep. 63: Deal talks continue amid bank M&A freeze, setting up for strong Q4

Street Talk Podcast

Street Talk - Ep. 62: 'Brutal' outlook for oil demand offers banks in oil patch no relief

Amid Q1 APAC Fintech Funding Slump, Payment Companies Drove Investments


SEC to explore ripple effects of asset management industry's M&A craze

Wall Street's top regulator plans to explore the ripple effects of the deal craze that has hit asset managers in recent years.

Across the industry, asset management behemoths such as BlackRock Inc. and Invesco Ltd. have been snatching up their smaller competitors as a way of bolstering their assets under management while introducing potential cost savings into their models. But that consolidation has piqued the interest of the SEC, where officials including its Division of Investment Management director, Dalia Blass, are worried about the potential impacts that the M&A frenzy could have on investor choice.

"I am concerned about what it will mean for investors, particularly Main Street investors, if the variety and choice offered by small and midsize asset managers becomes lost in a wave of consolidation and fee compression," Blass said March 18 during a speech in San Diego.

Now, Blass has directed her staff to begin reaching out to small and midsize fund sponsors to gain a better understanding of how the SEC can address any potential regulatory burdens that smaller asset managers face. The agency is also hoping to gain insights into other steps it could take to allow smaller companies to better compete, Blass said.

To address some of these lingering worries in the industry, the SEC is considering forming an asset management advisory committee as well, Blass said.

Asset managers have undergone a massive wave of consolidation in recent years, as investors continue to seek out low-cost investment products and strategies that also have highly technical systems that their clients can easily use. A large portion of the M&A activity in the asset management industry has focused on active managers, which have largely struggled to outperform their benchmark indexes in recent years, leading investors to pour even more money into index-tracking vehicles such as exchange-traded and index funds.

Smaller asset managers also tend to make for easy targets, as executing and integrating large-scale mergers in the asset management industry can be very difficult, Franklin Resources Inc. Chairman and CEO Gregory Johnson said in January.

Atlanta-based Invesco's chief executive, Martin Flanagan, whose company struck a $5.7 billion agreement in 2018 to acquire OppenheimerFunds Inc., recently estimated in an interview with the Financial Times that as many as one in three asset managers could no longer exist within the next five years.

"The strong are getting stronger and the big are going to get bigger," Flanagan said, according to the report.