M&A SOS: Can active fund managers buy their way back to absolute return glory?

Questioning the need for mergers

With central banks showing little appetite to shift away from ultra-low rates and continuous quantitative easing (QE), asset managers have been on the acquisition hunt to beef up revenues to appease disgruntled investors.

From Morgan Stanley's acquisition of ESG friendly Eaton Vance to Franklin Templeton's purchase of Legg Mason and Ares Management's proposed takeover of AMP, this flurry of deal-making begs the question: does boosting revenues through M&A really address the longstanding challenge of delivering absolute returns for investors? Let's face it, the current investment environment is testing even the best and the brightest active asset managers' ability to beat the markets. Paying the price of recovery: Could the Bank of England be the first to raise rates? According to the latest bi-annua...