One firm that could give BlackRock a run for its money

Invesco Ltd. is poised to challenge BlackRock Inc. for the position of world's biggest asset manager, according to Don Putnam, managing partner of Grail Partners LLC.
NOV 29, 2010
Invesco Ltd. is poised to challenge BlackRock Inc. for the position of world's biggest asset manager, according to Don Putnam, managing partner of Grail Partners LLC. Speaking at the Money Management Institute's fall conference in New York on Nov. 12, Mr. Putnam talked about how today “is the era of an operator” and that it's not enough for asset managers merely to push products . Instead, firms have to be all things to all people, he said. “BlackRock has proved to us that it's possible to be in every product in every market,” Mr. Putnam said. “Right now, it's not a money manager; it's a global delivery system for products.” With $3.35 trillion in assets under management as of Dec. 31, BlackRock offers exchange-traded funds and mutual funds, as well as active and passively managed products, he said. What's more, its performance across all categories is stellar. BlackRock acquired Barclays Global Investors last year, helping to add $2 trillion in assets under management. Mr. Putnam anticipates that there will be increased consolidation in the asset management space as more firms attempt to become “operators” like BlackRock, he said. “The common wisdom — that from an investment perspective, transactions in this industry are not a success — is statistically not true,” he said. Out of 115 financial transactions in the last year, there have been only two debt refinancings and one collapse, he said. The firm that is in the best position to go head-to-head with BlackRock is Invesco, Mr. Putnam said “They have the most complete product line and a superior management team,” he said. Invesco bought Van Kampen Funds Inc. last year for $1.5 billion. The firm also offers ETFs through its PowerShares subsidiary. E-mail Jessica Toonkel at [email protected].

Latest News

Maryland bars advisor over charging excessive fees to clients
Maryland bars advisor over charging excessive fees to clients

Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.

Wave of SEC appointments signals regulatory shift with implications for financial advisors
Wave of SEC appointments signals regulatory shift with implications for financial advisors

Reshuffle provides strong indication of where the regulator's priorities now lie.

US insurers want to take a larger slice of the retirement market through the RIA channel
US insurers want to take a larger slice of the retirement market through the RIA channel

Goldman Sachs Asset Management report reveals sharpened focus on annuities.

Why DA Davidson's wealth vice chairman still follows his dad's investment advice
Why DA Davidson's wealth vice chairman still follows his dad's investment advice

Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.

401(k) participants seek advice, but few turn to financial advisors
401(k) participants seek advice, but few turn to financial advisors

Cerulli research finds nearly two-thirds of active retirement plan participants are unadvised, opening a potential engagement opportunity.

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.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave