Nomura to pay $1 billion for stake in American Century

Nomura to pay $1 billion for stake in American Century
DEC 21, 2015
By  Bloomberg
Nomura Holdings Inc., Japan's biggest brokerage, plans to pay about $1 billion for a stake of around 40% in U.S. money manager American Century Investments, according to a person familiar with the matter. The purchase from Canadian Imperial Bank of Commerce would take place early next year, the person said on Monday, asking not to be identified because the matter was confidential. Details could be announced as early as the same day if an agreement is reached, the person said. Buying the stake would be Nomura's biggest overseas investment since it acquired Instinet Inc. for $1.2 billion in 2007. The Japanese firm is seeking to expand its capabilities to sell products to pension funds and insurers, and enter private banking and retail markets in the U.S., chief executive Koji Nagai said in materials for an investor presentation on Dec. 1. Kenji Yamashita, Nomura's Tokyo-based spokesman, declined to comment. No comment was immediately available from American Century Investments or CIBC. CIBC agreed in 2011 to buy 41% of Kansas City, Mo.-based American Century Investments from JPMorgan Chase & Co. for $848 million. The money manager was founded in 1958 by the late Jim Stowers Jr. and channels more than 40% of its profits to research to help cure genetically based diseases, according to its website. It had about $141 billion of assets under management as of February 2014. Nomura plans to sell investment trusts incorporating Japanese and Asian shares to individual investors in the U.S. through American Century Investments' nationwide sales network, a Nikkei newspaper reported earlier. To bolster profitability, the Tokyo-based brokerage is seeking to expand in faster-growing businesses outside of its home country. It bought ING Groep NV's Taiwanese investment unit last year, becoming the first Japanese asset manager to operate in the market. Nomura also established a fund-management venture with China's Shenzhen Hua Xia Ren He Capital Management last year.

Latest News

Investor anxiety hits six-year high amid market turmoil, Allianz finds
Investor anxiety hits six-year high amid market turmoil, Allianz finds

New survey reveals heightened investor concern over market volatility, retirement readiness, and the impact of tariffs on living costs.

Stifel star broker, Chuck Roberts, leaves firm under cloud of investor complaints
Stifel star broker, Chuck Roberts, leaves firm under cloud of investor complaints

Stifel – so far - is on the hook for more than $166 million in damages, legal fees and settlements in investor complaints involving Roberts, a 35-year industry veteran.

RIA moves: The Mather Group, Brand Asset Management announce deals
RIA moves: The Mather Group, Brand Asset Management announce deals

Consolidation continues in US wealth management industry.

US broker-dealer fintech aims for global footprint as it acquires international firm
US broker-dealer fintech aims for global footprint as it acquires international firm

Tech company democratizes access to US trading infrastructure.

Advisor moves: RBC swipes $1.7B UBS team, Baird duo departs for LPL's Linsco channel
Advisor moves: RBC swipes $1.7B UBS team, Baird duo departs for LPL's Linsco channel

RBC Wealth Management's latest move in New York adds an elite eight-member team to its recently opened Westchester office.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.