26.91 0.00 (0.00%)
After hours: 4:16PM EDT
|Bid||26.91 x 900|
|Ask||26.92 x 800|
|Day's range||26.83 - 27.61|
|52-week range||11.81 - 28.75|
|Beta (5Y monthly)||1.42|
|PE ratio (TTM)||66.77|
|Earnings date||29 Oct 2020|
|Forward dividend & yield||1.44 (5.21%)|
|Ex-dividend date||07 Aug 2020|
|1y target est||25.42|
(Bloomberg) -- Investor Nelson Peltz said he believes his newest targets, asset managers Invesco Ltd. and Janus Henderson Group Plc., need to grow and to alter their structures to compete against larger rival BlackRock Inc.Peltz’s Trian Fund Management LP has disclosed three new positions in recent weeks, including two 9.9% stakes in Invesco and Janus. The investment firm also disclosed a stake in Comcast Corp. in September valued at roughly $890 million.Peltz and Trian co-founder Ed Garden are seeking seats on the board of Atlanta-based Invesco, which Peltz said at a conference Wednesday he hoped would happen soon.“These are stable businesses that have some challenges, and we think we’re up to the challenge. I think they need scale and I think that’s going to happen,” Peltz said during the Capitalize for Kids Virtual Investors Conference.“You’re going to see many of these merge, and you’re going to see two or three of them come out similar to what BlackRock looks like,” he added.Representatives for Invesco and Janus weren’t immediately available for comment.It was the first time Peltz discussed his investments in Invesco and Janus publicly. He said he liked both businesses because the asset management sector is out of favor despite the strength of the underlying businesses.They have no environmental risk, they have earnings and cash on the books, and the segments that they operate in are healthy outside of the so-called active equity vertical, where fund managers decide where to invest, he said.Peltz said he had some ideas on how to restructure the active equity business that he’d share with Invesco once he’s on the board. He didn’t delve into what exactly he would like to see, outside of the companies growing bigger through mergers, cutting costs, and potentially some restructuring.“I love this industry. We’ve been in and out of it for close to 15 years,” he said. “I think I’m more excited about this industry and these investments than I have been about anything for a very long time.”Asset managers face increasing pressure to consolidate in response to heightened regulatory costs, increased competition from low-cost index funds and shrinking fees. Merging is one way to combat these issues, which led to the 2017 tie-ups that created Janus Henderson and rival Standard Life Aberdeen Plc.Trian has a track record of taking stakes in companies and agitating for change. The firm’s purchase of a 4.5% stake in Legg Mason Inc. last year -- the second time it invested in the firm -- resulted in a board seat for Peltz. The company was acquired by rival Franklin Resources Inc. in August.Comcast has been under pressure as well to improve returns as it tries to withstand the disruption wrought by online services such as Netflix Inc. Comcast’s struggling NBCUniversal and Sky divisions have been a particular drag on its earnings, prompting calls for the company to split off the entertainment business from its cable assets to improve returns. Peltz didn’t discuss his investment in Comcast at the conference.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Janus Henderson Investors (NYSE/ASX: JHG) today announced the launch of the Janus Henderson AAA CLO ETF (NYSE: JAAA), an actively managed exchange-traded fund designed to enhance access to a segment of the fixed income market that has historically only been available to institutional investors.
(Bloomberg Opinion) -- BlackRock Inc., the biggest beast in the fund management forest, on Tuesday announced that it grew its assets under management by 12% to $7.81 trillion in the third quarter from a year earlier. In normal times, that would be a staggering achievement; coming in the middle of a pandemic, it’s astonishing. It highlights the advantage that scale brings in winning new business and retaining existing clients in the arena of managing other people’s money.It’s one of a trio of recent developments that reinforce the growing schism between the haves and the have-not-enoughs in the fund management industry. This week’s announcement that Fidelity Investments plans to hire 4,000 new staff in the next six months is further evidence that size matters more than just about everything else, as is Morgan Stanley’s $7 billion purchase last week of Eaton Vance Corp. to gain its $500 billion of assets.With $3.3 trillion under management, Fidelity is a member of the exclusive $1 trillion club — the supposed minimum amount of funds required to compete effectively for customers. As central banks have pumped trillions of dollars into the global economy to offset the economic effects of the pandemic, the firm says it’s enjoying a bonanza of new and existing customers opening more accounts and trading more actively.For Morgan Stanley, the Eaton Vance transaction will swell the amount it oversees in its eponymous investment management division to $1.2 trillion. As my colleague Brian Chappatta wrote last week, the U.S. bank’s Chief Executive Officer James Gorman had made no secret of the need to scale up in asset management.But fewer than 30 asset managers around the world have managed to clear the $1 trillion hurdle, according to a report published this week by Greenwich Associates. Those on the wrong side of the velvet rope need to distinguish themselves by either the products they offer, the clients they serve or the investment approach they pursue. Even then, the Greenwich report says, “success will be achieved only by managers who select the proper strategy and then beat the competition through consistent, superior execution.”Although that’s a chilling message for the mid-tier firms that make up most of the sector, it could be a boon for the mergers and acquisitions bankers who’ve been circling the fund management industry for years with deals in mind. In Europe in particular, only France’s Amundi SA currently qualifies for the top division, with about $1.9 trillion of assets.The mergers that produced Janus Henderson Group Plc and Standard Life Aberdeen Plc saw clients pulling money out of both firms as they struggled to integrate different cultures. The results have deterred rivals from following suit. But as the biggest firms continue to win an even greater slice of the asset management pie, the message is becoming clearer: Go big, or go home.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Mark Gilbert is a Bloomberg Opinion columnist covering asset management. He previously was the London bureau chief for Bloomberg News. He is also the author of "Complicit: How Greed and Collusion Made the Credit Crisis Unstoppable."For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.