MINNEAPOLIS — A yet-unnamed money management firm will be launched later this year with at least $366 billion in assets under management.
The huge firm without a name will be formed from the spinoff by American Express Co. of its American Express Financial Advisors unit. Amex's institutional money management, mutual fund and defined contribution businesses are included in the deal, as is Threadneedle Investments, the U.K.-based money manager with £62.8 billion ($118.2 billion) in assets under management as of Dec. 31, 2004.
American Express Financial Corp., the entity that responds to Pensions & Investments' money management surveys, had more than $366 billion under management at the end of 2003, according to the latest P&I data. Amex officials wouldn't provide updated assets under management, but its financial statements say the company had $412 billion in owned, managed and administered assets as of Dec. 31.
Its American Express Retirement Services unit had $31.4 billion in defined contribution assets at the end of 2004, and AEFA, including its American Express Asset Management business, has $12 billion in U.S. institutional separate account and CDO assets under management as of Oct. 1, 2004, said Paul Johnson, spokesman. He added that AEFA had $2.5 billion in alternative assets, including fund-of-funds and single strategies, at year end.
Although American Express officials won't release their valuations, Morningstar Inc., Chicago, values AEFA at between $9.5 billion and $10 billion, based on 13 times 2004 earnings, said Ryan Batchelor, Morningstar financial services analyst.