Consistent with its efforts to expand its institutional and
retail client base,
Affiliated Managers Group Inc.
) closed a deal with Aviva Investors North America Holdings, Inc.,
thereby acquiring River Road Asset Management from the latter.
Aviva Investors North America Holdings, Inc. is a subsidiary of
), the U.K.-based insurer.
The terms and conditions of the aforementioned deal, announced in
Mar 2014, were not disclosed. Moreover, per the deal, the
executives and key investment professionals of River Road will
continue to be associated with the unit's operations.
Headquartered in Louisville, KY, River Road has nearly $11 billion
in assets under management (AUM) and offers value-oriented equity
strategies. The acquisition seems a strategic fit for Affiliated
Managers as it will not only expand its present market share but
also enable it to capitalize on River Road's innovative product
Affiliated Managers' stock price movement, following the news
release on Monday, reflected a positive market response. The shares
closed at $205.40, inching up 1.46% from the previous-day figure.
Given Affiliated Managers' strong balance sheet and liquidity
position, we expect the company to continue investing in other
companies. Earlier in Mar 2014, the company completed its
investment in SouthernSun Asset Management, LLC, while in Apr 2014
it completed an equity investment in EIG Global Energy Partners,
Further, consistently sound performance of its affiliates, product
diversification and expansion of global distribution networks will
steadily support Affiliated Managers' top-line growth in the
quarters to follow.
Currently, Affiliated Managers carries a Zacks Rank #3 (Hold).
Some better-ranked investment managers include
Woori Finance Holdings Co., Ltd.
Ameriprise Financial, Inc.
). While Woori Finance sports a Zacks Rank #1 (Strong Buy),
Ameriprise holds a Zacks Rank #2 (Buy).
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