UK-based fund manager Henderson Group plc (ASX: HGG) today announced it has agreed to acquire two boutique fund managers from IOOF Holdings Limited (ASX: IFL). In a separate deal Henderson also announced it is to take full ownership of another junior fund manager named 90 West Asset Management.
The two junior businesses being acquired from IOOF are the fixed income and equities management businesses of Melbourne-based Perennial Investment Partners. The acquisitions will add around $5.5 billion in funds under management (FUM) to the Henderson Group.
Henderson has around $185 billion of FUM globally and has made no secret of its ambition to grow into the Australian asset management market. Notably much of its Australian strategy seems to be based on acquisitive growth rather than setting up shop on its own Down Under.
In the past a possible marriage between Henderson and Perpetual Limited (ASX: PPT) has been mooted. The speculation on the basis that Henderson wants to move into Australia and Perpetual represents a ready made target as an Australian equity specialist with distribution networks and institutional relationships already in place.
Perpetual has also made baby steps into the global equities space itself recently, although the fact it also has private wealth and trustee advisory businesses tacked on would probably make it less attractive to Henderson.
Henderson has a market cap around $6.5 billion, compared to Perpetual's $2.6 billion and any potential merger would create a new powerhouse on the Australian funds management scene.
As it is the major players in terms of FUM remain the likes of AMP Limited (ASX: AMP) and the asset management arms of the big banks like Commonwealth Bank of Australia's (ASX: CBA) Colonial First State business.
While the prospect of a Henderson / Perpetual merger is interesting the chances of it happening are slim and buying either stock on the basis of it would not be sensible.
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