Morgan Grenfell Asset Management is looking to acquire a U.S. equity manager and would also like to add a domestic high-yield bond product to its roster in the future.
James Minnick, president of Morgan Grenfell Capital Management Inc., New York, the manager's U.S. unit, said the firm would like to add large- and midcapitalization strategies to its domestic equity offerings, which now consist of small- and micro-cap equity. Morgan Grenfell is looking at possible acquisitions, and Mr. Minnick said it could either lift out an existing team or acquire a firm. He added Morgan Grenfell would like to have a domestic high-yield bond product, but its management is not looking currently for any acquisitions.
The firm has significant business in the United Kingdom and Germany but would have better opportunities to add assets in the United States if it had more domestic equity products, said Mr. Minnick. Morgan Grenfell manages $94 billion in assets worldwide, of which $21 billion are managed for North American clients, he said.
Its two main units manage a line of domestic and international products, as well as emerging markets Morgan Grenfell Capital Management has domestic small-cap equity and fixed-income products managed in offices in New York and Philadelphia. Morgan Grenfell Investment Services Ltd. has various international equity and fixed-income products -including emerging markets debt and equity - headquartered in its London offices. The firm also has offices in Hong Kong, Singapore, Tokyo and India.
The domestic equity acquisition would continue the expansion started last year, when Morgan Grenfell merged with the asset management unit of its parent company, Deutsche Bank AG, Frankfurt.
Morgan Grenfell became Deustche Bank's money management standard bearer, absorbing the bank's asset management operations, except for those based in Germany. Deutsche Bank Asset Management, Frankfurt, the German money manager, retained its name, but became a division of Morgan Grenfell.
The two organizations had a good fit in their business, said Mr. Minnick. While the bank had strength in continental Europe, Morgan Grenfell had a higher profile in the United States and United Kingdom; both had also established asset management offices in Tokyo, which were also merged. Additionally, Deutsche Bank has a good presence in the custody market in Latin America, said Mr. Minnick. In that area, the bank could help Morgan Grenfell expand its client base beyond its current clientele of central banks, he said.