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American Century Shifting Gears, Turns To Acquisitions

FYI: American Century Investments expects to finalize in the next few days a private placement debt offering that will give it the funding for planned purchases of two asset managers specializing in quantitative equity and fixed-income strategies, respectively, CEO Jonathan Thomas said in an interview.
Regards,
Ted
http://www.pionline.com/article/20170821/PRINT/170829990/american-century-shifting-gears-turns-to-acquisitions

Comments

  • 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.
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