U.S. Markets open in 5 hrs 57 mins
  • S&P Futures

    3,797.75
    +7.25 (+0.19%)
     
  • Dow Futures

    30,829.00
    +1.00 (+0.00%)
     
  • Nasdaq Futures

    13,060.75
    +75.25 (+0.58%)
     
  • Russell 2000 Futures

    2,142.50
    -4.80 (-0.22%)
     
  • Crude Oil

    53.39
    +0.41 (+0.77%)
     
  • Gold

    1,854.10
    +13.90 (+0.76%)
     
  • Silver

    25.58
    +0.26 (+1.01%)
     
  • EUR/USD

    1.2139
    +0.0006 (+0.0485%)
     
  • 10-Yr Bond

    1.0920
    0.0000 (0.00%)
     
  • Vix

    22.84
    -1.50 (-6.16%)
     
  • GBP/USD

    1.3668
    +0.0034 (+0.2460%)
     
  • USD/JPY

    103.7900
    -0.1020 (-0.0982%)
     
  • BTC-USD

    35,860.48
    -33.77 (-0.09%)
     
  • CMC Crypto 200

    710.34
    +9.73 (+1.39%)
     
  • FTSE 100

    6,698.99
    -13.96 (-0.21%)
     
  • Nikkei 225

    28,523.26
    -110.24 (-0.39%)
     

Trian Fund Picks Up 9.9% Stake Each In Invesco And Henderson Group: WSJ

Aditya Raghunath
·2 min read

Trian Fund Management L.P has invested approximately $900 million in Invesco Ltd (NYSE: IVZ) and Janus Henderson Group PLC (NYSE: JHG) combined, with an intent to take on global giants in the asset management industry, according to the Wall Street Journal. After the stake purchase, Trian will hold a 9.9% position in each of the two companies.

What Happened: Trian’s $900 million investment will be partly sponsored via a long-term unreported fund, originally created with a view of consolidating the asset management space, as per the Journal. The remaining amount will be retained in the fund until new opportunities emerge in this sector.

In February, investment management company Franklin Resources Inc (NYSE: BEN) announced the acquisition of peer Legg Mason Inc, which was closed on July 31. Bloomberg said that Trian Fund Management raked in a $70 million profit from the investment it made in Legg Mason nine months ago.

Why Does It Matter: Trian’s investment is part of a broader strategy to introduce a befitting rival against large-cap rivals like BlackRock Inc (NYSE: BLK), the Journal noted.

Asset management firms are facing setbacks like dropping fees and reduced profitability margins. A larger entity with a wider asset base would be in a better position to brave these headwinds.

Recent trends also indicate that investors are attracted to index funds in comparison to an actively managed portfolios, according to CNBC. The cost of management is the primary deciding factor.

Trian earlier last month revealed it had invested 0 million in Comcast Corporation (NASDAQ: CMCSA).

Price Action: Invesco closed 1.49% lower at $11.25 on Thursday. Janus Henderson shares closed at $21.60, 0.60% lower.

See more from Benzinga

© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.