What You Need to Know
- Invesco is in talks to merge with State Street’s asset management business, according to The Wall Street Journal.
- State Street manages $4.5 trillion in assets; Invesco, about $1.5 trillion.
- The tie-up would be a logical one and could push fund fees even lower, ETF researchers say.
Another mega asset manager merger could be underway.
The Wall Street Journal is reporting that Invesco, which has $1.5 trillion in assets, is in talks to merge with State Street’s asset management business, according to “people familiar with the matter,” though no deal is imminent. State Street manages $4.5 trillion.
The combined firm would rank just below BlackRock and Vanguard, which have roughly $9 trillion and $7.5 trillion, respectively, in assets.
Both State Street and Invesco declined to comment on what their spokespeople described as “market rumors” and “speculation.” By midday Invesco shares were up 5.7% while State Street shares were down 2.7%.
Invesco and State Street have been acquiring other financial services businesses in recent years. Invesco acquired OppenheimerFunds and Guggenheim Partners’ ETF business, and hedge fund Trian Fund Management took a 9.9% stake last October.