Jefferies Expects Divestitures to Remain Dominant Source of Asset Management M&A in Q4 2009.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of & LONDON -- Transaction volume in the global asset management industry in the third quarter of 2009 was dominated by larger financial institutions shedding investment management businesses, and that trend will continue in the months ahead, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Jefferies & Co.'s Financial Institutions Group, formerly Jefferies Putnam Lovell. Over two-thirds of Q3 2009 global asset management M&A activity - 68% - represented divestitures, a record level in a three-month period, according to Jefferies. Prominent examples include Bank of America's announced sale of the long-term asset management business of its Columbia Management subsidiary to Ameriprise; Bank of New York The Bank of New York, abbrieviated to BNY, was a global financial services company that existed until its merger with the Mellon Financial Corporation on July 2, 2007.[1] The bank now continues under the new name of The Bank of New York Mellon Corporation. Mellon's announced acquisition of Insight Investment Management from Lloyds Banking Group; and the purchase by Sumitomo Trust & Banking of Citigroup's 64% interest in Nikko Asset Management. By contrast, divestitures represented 38% of the total deal volume in the third quarter of 2008. Year-to-date through September 2009, divestitures totaled 57% of asset management transactions, a record for a nine-month period, compared with 32% in the year-earlier period. ''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,'' said Aaron Dorr, a New York-based managing director within Jefferies Financial Institutions Group. Deal volume in the July to September 2009 period totaled 38, compared with 66 announced transactions in the third quarter of 2008. Managed assets transacted rose to $749 billion from $728 billion a year earlier. Disclosed deal value climbed to $4.5 billion from $4.2 billion in the third quarter of 2008, and the median deal value was $140 million, almost twice the median $73 million in the third quarter of 2008. For the first nine months of 2009, deal volume totaled 113, compared with 174 in the year-earlier period. Approximately $3 trillion in managed assets transacted year-to-date in 2009, against $1.3 trillion in the first nine months of 2008. Disclosed deal value totaled $18.4 billion thus far in 2009, led by the announced sale of Barclays Global Investors Barclays Global Investors is a subsidiary of British-based Barclays Bank which is in the investment management industry. It is the largest corporate money manager in the world, with over £936 billion (US$1.77 trillion) under management as of March 2006[1]. to BlackRock for $13.5 billion. In the first nine months of 2008, disclosed deal value totaled $11.9 billion. While the number of divestitures is on the rise in 2009, transactions involving alternative asset managers declined, along with cross-border deals. Alternative deals represented 24% of the total in the third quarter of 2009, and 25% for the first nine months. That's down from 27% in the third quarter of 2008 and 33% for the first nine months of 2008. The number of announced cross-border deals fell to 26% in the third quarter of 2009 from 35% in the year-earlier period, and to 19% for year-to-date 2009 from 34% in the first nine months of 2008. The largest global asset management transactions announced in the third quarter of 2009, by assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. , were: * Ameriprise Financial's acquisition of the long-term asset management business of Bank of America's Columbia Management ($165 billion AUM Aum (ä·ōōmˑ), n.pr 1. in Ayurveda, the subtle, noiseless cosmic vibration in which consciousness existed in the beginning, before the elements appeared. ). * Bank of New York Mellon's purchase of Insight Investment Management from Lloyds Banking Group ($132 billion AUM). * Macquarie Group's acquisition of Delaware Management from Lincoln Financial ($125 billion AUM). * Sumitomo Trust & Banking's purchase of Citigroup's 64% interest in Nikko Asset Management ($93 billion AUM). * Pacific Century's acquisition of AIG's asset management business ($89 billion AUM). The largest global asset management transactions announced in the third quarter of 2009, by disclosed deal value, were: * Ameriprise Financial's acquisition of the long-term asset management business of Bank of America's Columbia Management ($1 billion). * Sumitomo Trust & Banking's purchase of Citigroup's 64% interest in Nikko Asset Management ($844 million). * Artio Global Investors' IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. ($650 million). * Pacific Century's acquisition of AIG's asset management business ($500 million). * Macquarie Group's acquisition of Delaware Management from Lincoln Financial ($428 million). About Jefferies Jefferies, a major global securities and investment banking group, has served companies and their investors for more than 45 years. Headquartered in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , with offices in more than 25 cities around the world, Jefferies provides clients with capital markets and financial advisory services advisory services advisory services provided to the public, in their capacity as owners and managers of animals, are an important part of veterinary science. They may be provided by government bureaux, by commercial companies who deal in pharmaceuticals or animals or animal , institutional brokerage, securities research and asset management. Jefferies & Company, Inc. is the principal operating subsidiary of Jefferies Group, Inc. (NYSE NYSE See: New York Stock Exchange : JEF JEF Jefferies Group, Inc. (stock symbol) JEF Junge Europäische Föderalisten (German: Young European Federalists) JEF Joint Educational Facilities, Inc. : www.jefferies.com). Jefferies International Limited, a UK-incorporated, wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Jefferies Group, Inc., is authorised and regulated by the UK Financial Services Authority The Financial Services Authority ("FSA") is an independent non-departmental public body and quasi-judicial body that regulates the financial services industry in the United Kingdom. Its main office is based in Canary Wharf, London, with another office in Edinburgh. . |
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