Nomura to pay $1 billion for stake in American Century

Nomura to pay $1 billion for stake in American Century
DEC 21, 2015
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

Carnegie Investment Counsel sued over valuation suppression
Carnegie Investment Counsel sued over valuation suppression

Retiring RIA seller David Laidlaw alleges the Carnegie valued his stake on $11.7 million EBITA while pitching potential buyers on $21.3 million.

Arch pushes AI portfolio monitoring into pre-investment due diligence
Arch pushes AI portfolio monitoring into pre-investment due diligence

New tool gives RIAs and family offices AI help vetting private market deals, with some users reportedly halving review time.

$4.5M raised on trust alone: SEC alleges affinity fraud in merchant lending
$4.5M raised on trust alone: SEC alleges affinity fraud in merchant lending

Investors got projected returns dressed up as real ones, SEC says

Treasury sets auto-enrollment rules for Trump Accounts, potentially adding 60 million more children
Treasury sets auto-enrollment rules for Trump Accounts, potentially adding 60 million more children

Parents must still act to get the $1,000 federal seed and employer contributions, giving financial advisors a role in the rollout.

FINRA bars former LPL broker for stealing $1.7 million from customers
FINRA bars former LPL broker for stealing $1.7 million from customers

FINRA booted Rudy Anguiano from the industry for “conversion - the intentional and unauthorized taking of another person’s property.”

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains