ATLANTA, Sept. 28, 2017 /PRNewswire/ -- Invesco Ltd.
(NYSE: IVZ) announced today that it has entered into a definitive
agreement to acquire Guggenheim Investments' exchange-traded funds
(ETF) business, which includes $36.7
billion of assets under management (as of Aug. 31, 2017). The acquisition will bring
a broad array of funds that expands Invesco's active, passive and
alternative capabilities, enhancing the firm's ability to provide
solutions that help clients achieve their investment
objectives.
Invesco will hold a conference call to discuss the acquisition
of Guggenheim Investments' ETF business at 8:30 a.m. ET on Friday, Sept. 29. Those
wishing to participate are invited to call using the information
listed below in the section headed, "Conference call details."
Under the terms of the agreement, Invesco would acquire
Guggenheim Investments' ETF business for $1.2 billion in cash. The transaction will
be funded using a combination of cash and debt. The
transaction is expected to close in the second quarter, pending
necessary third-party approvals, including certain regulatory
matters and requisite ETF board and ETF shareholder approvals.
The acquisition will complement Invesco's market-leading ETFs
capability and strengthen our ability to help meet the needs of
institutional and retail clients in the US and across the globe,
which will contribute further to the growth and long-term success
of our business. With the addition, Invesco's ETF assets
under management would total more than $196
billion globally (as of Aug.
31, 2017). Specifically, we believe the acquisition
will further:
- Expand the depth, breadth and diversity of Invesco's
traditional and smart beta ETFs;
- Strengthen the competitiveness of our US Wealth
Management Intermediaries business while providing additional scale
and relevance in the growing ETF market globally;
- Broaden and deepen our relationships with client
platforms;
- Accelerate our ability to offer an expanded range of
ETFs to the institutional market;
- Build on our existing self-indexing capability; and
- Leverage the scale of our existing platform to create
operational efficiencies (e.g., combined capital markets function
for ETFs).
"We've built and managed Invesco over many years with a single
focus: to help clients achieve their investment objectives,"
said Martin L. Flanagan, president
and CEO of Invesco. "Guggenheim Investments' ETF business is
highly complementary to Invesco's, and will enable us to provide
one of the industry's most comprehensive and innovative ranges of
smart beta ETFs, including fixed income, equal-weight and
self-indexed product offerings. The acquisition further
expands our ability to build better, more diversified portfolios
through our solutions capability, and enhances the range of
capabilities available via Jemstep, our advisor-focused digital
solution. The addition enhances our ability to help meet
client needs, which will help further accelerate the growth of our
business."
"This combination will further strengthen our market share and
position by providing greater access to key channels and expanding
the scale and relevance of our global ETF business," added
Dan Draper, global head of ETFs at
Invesco. "The addition builds on our existing self-indexing
capability and brings the highly popular BulletShares®
ETFs, both of which will further strengthen our ability to help
clients achieve their investment objectives."
"Guggenheim Investments remains committed to delivering strong,
risk-adjusted performance to clients by employing our rigorous and
repeatable investment processes, as well as executing sound
fundamental research and analysis," said Jerry W. Miller, president of Guggenheim
Investments. "With today's announcement, Guggenheim Investments
takes an important step in its growth strategy by sharpening its
focus on core strengths, including active portfolio management,
across both our institutional strategies and other retail
businesses. We are confident that Guggenheim ETF shareholders
will find in Invesco the right partner and platform for our suite
of distinctive and innovative ETF products, including one of the
industry's leading equal-weight ETF offerings."
Citigroup Global Markets acted as financial advisor to
Guggenheim Investments.
Conference call details
Invesco will hold a conference call to discuss the acquisition
of Guggenheim Investments' ETF business at 8:30 a.m. ET on Friday, Sept. 29. Those
wishing to participate should call:
US & Canada toll-free: 866-617-1526
International: 210-795-0624
You may access the presentation at
www.invesco.com.
An audio replay will be available
approximately one hour after the call. You may access the
audio replay by dialing:
US & Canada:
800-365-0092
International: 402-998-1061
About Invesco Ltd.
Invesco is an independent investment management firm dedicated
to delivering an investment experience that helps people get more
out of life. NYSE: IVZ; www.invesco.com.
PowerShares and Jemstep are wholly owned indirect subsidiaries
of Invesco Ltd.
About Guggenheim Investments
Guggenheim Investments is the global asset management and
investment advisory division of Guggenheim Partners with more than
$242 billion1 in total
assets across fixed income, equity, and alternative strategies. We
focus on the return and risk needs of insurance companies,
corporate and public pension funds, sovereign wealth funds,
endowments and foundations, consultants, wealth managers, and
high-net-worth investors. Our 275+ investment professionals perform
rigorous research to understand market trends and identify
undervalued opportunities in areas that are often complex and
underfollowed. This approach to investment management has enabled
us to deliver innovative strategies providing diversification
opportunities and attractive long-term results.
This release and the presentation may include "forward-looking
statements." Forward-looking statements include information
concerning future results of our operations, expenses, earnings,
liquidity, cash flow and capital expenditures, industry or market
conditions, AUM, acquisitions, debt and our ability to obtain
additional financing or make payments, regulatory developments,
demand for and pricing of our products and other aspects of our
business or general economic conditions. In addition, words
such as "believes," "expects," "anticipates," "intends," "plans,"
"estimates," "projects," "forecasts," and future or conditional
verbs such as "will," "may," "could," "should," and "would" as well
as any other statement that necessarily depends on future events,
are intended to identify forward-looking statements.
Forward-looking statements are not guarantees, and they involve
risks, uncertainties and assumptions. There can be no assurance
that actual results will not differ materially from our
expectations. We caution investors not to rely unduly on any
forward-looking statements and urge you to carefully consider the
risks described in our most recent Form 10-K and subsequent Forms
10-Q, filed with the Securities and Exchange Commission.
You may obtain these reports from the SEC's website at
www.sec.gov. We expressly disclaim any obligation to update the
information in any public disclosure if any forward-looking
statement later turns out to be inaccurate.
1Guggenheim Investments total asset figure is as of
08.31.2017. The assets include
leverage of $11.6bn for assets under
management and $0.4bn for assets for
which we provide administrative services. Guggenheim Investments
represents the following affiliated investment management
businesses of Guggenheim Partners, LLC: Guggenheim Partners
Investment Management, LLC, Security Investors, LLC, Guggenheim
Funds Investment Advisors, LLC, Guggenheim Funds Distributors, LLC,
Guggenheim Real Estate, LLC, GS GAMMA Advisors, LLC, Guggenheim
Partners Europe Limited, and Guggenheim Partners India
Management.
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SOURCE Invesco Ltd.