Analysts said the deal reflects increased competition currently facing active equity- and fixed-income-focused managers facing low-cost passive and high-margin private market strategies. said there is.
Both Franklin and Putnam’s focus on active management “is not dead, but the share of active management in the accessible asset pool will inevitably decline…alternatives on the one hand and passives on the other.” There’s pressure between us,” Richard said. Mr. Bruyere is a strategic advisor to the global wealth management industry.He is managing his partner at Indefi.
R. Bruce Cameron, partner and co-founder of Berkshire Global Advisors, an investment bank focused on the global wealth management industry, said consolidation aimed at increasing scale to achieve efficiencies He pointed out that this will continue. Cameron believes things are heading in that direction, even for “great old companies” like Putnam and Franklin, with a few exceptions, as the big companies are currently struggling to acquire new assets. said there is.
Putnam’s disposal by Great West will likely be a bittersweet move for the Montreal-based company. The firm acquired a pillar of Boston’s wealth management industry in early 2007 for about $3.9 billion. At the time, Putnam had about $192 billion in assets under management. over $22 billion Pan Agora Asset Managementits quantitative money management affiliates.
this year, franklin templeton plans to buy Putnam for $136 billion in assets under management. PanAgora, with assets of $33 billion, will remain with Great West Lifeco.
Great West Lifeco executives suggested in a news release that a large wealth manager like Franklin Templeton would be a better fit to grow Putnam’s business. “Franklin Templeton is a diversified global wealth management firm and is well-positioned to take Putnam’s strength to the next level,” said Great West Lifeco President and CEO Paul A. Mahon said.
Pan Agora, by contrast, is a keeper, said Great West executives, who discussed the deal on a conference call with analysts Wednesday. “He likes PanAgora as a hold because he thinks PanAgora is a good business and has real upsides,” one executive explained.
Putnam has offices in Boston, London, Munich, Singapore, Sydney and Tokyo.
“This is an attractive transaction for Franklin Templeton and a long-term strategic partnership with the Power Group of Companies, which includes The Great West,” said Jenny Johnson, President and CEO of Franklin. We are excited about the many opportunities that our partnership will unlock.” Templeton said in a news release: “Power and Great West are global leaders in financial services, particularly in the affluent, insurance and retirement channels. “We are thrilled to welcome Great West as a strategic investor, along with the amazing team at Putnam.”
Power Corp. of Canada is the parent company of Great-West and Power Group of Companies.
