Invesco's Purchase of Morgan Stanley and Van Kampen Funds
Clinching a spot in the top 10
Invesco's (IVZ) $1.5 billion planned takeout of Morgan Stanley's (MS) retail asset management unit (which includes Morgan Stanley Funds and Van Kampen-branded offerings) will buy it a spot on the top 10 list of fund companies by assets. According to a press release issued earlier today, the deal will increase Inveso's assets by 28% to $536 billion.
Bringing together two large organizations and several distinct investment cultures will be a daunting challenge for Invesco. Both firms are already the result of decades of consolidations. For example, in the mid- to late-1990s, Morgan Stanley acquired flailing Van Kampen and MAS and later merged with Dean Witter. Invesco followed a similar pattern, the most significant combination being the 1997 merger of AIM Advisors and Invesco. Invesco has spent the last several years cleaning up its fund lineup and making sure assets are in the hands of its strongest managers.
Ryan Leggio does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.