Asset management M&A activity fails to bring 'meaningful profitability improvements'

M&A strategy not necessarily a winner

Mergers at European asset management giants have not achieved "meaningful profitability improvements", according to research from Morningstar.

Out of three major European asset management mergers, Amundi, Janus Henderson and Aberdeen, only Amundi consistently booked inflows following the merger. Both Janus Henderson and Aberdeen recorded significant and sustained outflows post-merger, with Morningstar's Consolidation in the European Asset-Management Industry report stating this could be due to challenges with client satisfaction or service quality during the integration process. However, Amundi succeeded through its "strategic emphasis on expanding in growth areas like passive investments, while simultaneously maintaining st...