Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Support MFO
Donate through PayPal
American Century Shifting Gears, Turns To Acquisitions
The purchases may be planned, but only in a vague sense since no specific target acquisitions have been identified.
As noted in the article, AC "is competing with other large asset managers also looking to acquire capabilities in quantitative equity and fixed income, they said. For another [thing], when it comes to quantitative managers, the pickings are slim."
I can see AC's point in enhancing its quant expertise and technology, but AC already does respectably though not impressively well in bonds. Two decades ago, it made sense for Twentieth Century to acquire Benham for help in fixed income. Now, other than buying AUM, I'm not sure what the objective is here.
It's interesting how many fund companies never see "reducing fund fees" as a way of attracting new money.....I say this as a shareholder of TWEIX, too.
Comments
As noted in the article, AC "is competing with other large asset managers also looking to acquire capabilities in quantitative equity and fixed income, they said. For another [thing], when it comes to quantitative managers, the pickings are slim."
I can see AC's point in enhancing its quant expertise and technology, but AC already does respectably though not impressively well in bonds. Two decades ago, it made sense for Twentieth Century to acquire Benham for help in fixed income. Now, other than buying AUM, I'm not sure what the objective is here.
It's interesting how many fund companies never see "reducing fund fees" as a way of attracting new money.....I say this as a shareholder of TWEIX, too.