Piper Sandler Financial Services Investment Banking
Monthly Asset & Wealth Management Report
December 2022
Aaron Dorr | Christopher Browne | Amit Jain |
MANAGING DIRECTOR, GROUP HEAD | MANAGING DIRECTOR | MANAGING DIRECTOR |
Tel: +1 212 466-7734 | Tel: +1 212 466-7735 | Tel: +1 212 466-7867 |
Email: Aaron.Dorr@psc.com | Email: Chris.Browne@psc.com | Email: Amit.Jain@psc.com |
Jason Greco | Cameron Hoerner |
DIRECTOR | DIRECTOR |
Tel: +1 212 466-7967 | Tel: +1 212 466-7745 |
Email: Jason.Greco@psc.com | Email: Cameron.Hoerner@psc.com |
Asset & Wealth Management Market Pulse
Month | ||
December 2022 | November 2022 | |
Global Asset Management Transaction Activity | ||
Number of Transactions | ||
Traditional Managers | 3 | 5 |
Alternative Managers | 7 | 5 |
Private Wealth Managers | 32 | 21 |
Total Transactions | 42 | 31 |
AUM Transacted ($ in Billions) | $80 | $45 |
U.S. Long-Term Retail Fund Net Flows Activity ($ in Billions) | ||
Equity | ||
Active Mutual Funds | ($64.1) | ($59.5) |
ETFs & Passive Mutual Funds | $24.4 | $23.3 |
Fixed Income | ||
Active Mutual Funds | ($52.3) | ($32.5) |
ETFs & Passive Mutual Funds | $22.4 | $29.9 |
Publicly-Traded Asset Manager Metrics | ||
Median Stock Price Return | ||
U.S. Traditionals | (2.4%) | 11.0% |
U.S. Alternatives | (12.5%) | 5.2% |
Median Forward P/E Multiples | ||
U.S. Traditionals | 11.5x | 12.6x |
U.S. Alternatives | 11.6x | 13.8x |
Annual | |
2022 | 2021 |
36 | 71 |
83 | 79 |
282 | 247 |
401 | 397 |
$1,611 | $3,354 |
($407.0) | ($176.5) |
$403.8 | $707.5 |
($539.2) | $312.0 |
$204.3 | $323.7 |
(21.9%) | 34.7% |
(37.0%) | 53.3% |
11.5x | 10.8x |
11.6x | 17.7x |
Comparison to Prior Period
Increase | Equal | Decrease |
Notes: | ||
Mutual f und net f low information includes U.S. open-end funds and ETFs | PIPER SANDLER | 2 | |
Perf ormance is based on dividend-adjusted returns |
Source: Piper Sandler, Morningstar Direct, FactSet
Transaction Highlights
Asset Management
- (12/2/22) Investcorp agreed to acquire Marble Point Credit Management, a U.S.-based CLO manager ($7.8B AUM). Upon closing of the transaction, Marble Point will be combined with Investcorp Credit Management, Investcorp's global credit platform ($14B AUM)
- (12/8/22) BNP Paribas Asset Management, the investment arm of BNP Paribas, agreed to acquire a majority stake in International Woodland Company, a Denmark-based sustainable natural resources investment manager
($5.8B AUM) - (12/13/22) Spouting Rock Asset Management, a multi- boutique manager platform, agreed to acquire Stewart Asset Management, an investment manager focused on U.S. growth equities ($251M AUM)
- (12/19/22) iM Global Partner, a France-basedmulti-boutique asset manager, acquired a non-controlling stake in Berkshire Asset Management, investment manager specializing in dividend-focused U.S. equities ($4.0B AUA)
- (12/19/22) Icona Capital Group, a U.K.-based alternative asset manager, acquired a 40% in Stoneweg, a Switzerland- based real estate asset manager ($5.3B AUM)
Wealth Management
- (12/1/22) Pathstone agreed to merge with Willow Street, a Wyoming-based trust and fiduciary services firm ($35B AUA)
- Mercer Advisors acquired:
- (12/1/22) Regis Management Company, a California- based wealth manager ($5.0B AUM / AUA)
- (12/6/22) Vintage Financial Services, a Michigan-based wealth manager ($850M AUM)
- (12/7/22) Resource Planning Group, a Georgia-based wealth manager ($325M AUM)
- Prime Capital Investment Advisors acquired:
- (12/12/22) Professional Financial Services, a South Dakota-based wealth manager ($185M AUM)
- (12/19/22) Liberty Wealth Advisors, a Florida-based wealth manager ($1.8B AUM)
- (12/19/22) Emigrant Partners acquired a minority stake in F.L.Putnam Investment Management Company, a Massachusetts-based asset and wealth manager
($6.0B AUM / AUA) - (12/19/22) Bluespring Wealth Partners, a subsidiary of Kestra Financial, acquired Goldstein Advisors, a Wisconsin- based wealth manager ($700M AUM)
Source: Company press releases, news articles, company filings
PIPER SANDLER | 3
U.S. Long-Term Retail Active & Passive Net Flows
($ in Billions)
Net Flows by Category (December 2022) Monthly Net Flows by Asset Class (Oct. 2022 - Dec. 2022)
Active Mutual Funds | ETFs & Passive Mutual Funds | |||
U.S. Equity | $(31.7) | |||
$23.7 | ||||
Equity | Fixed Income | Other | |
Active Mutual Funds | ETFs & Passive Mutual Funds | ||
$100 | $84 | ||
$50 | $47 | $53 | $28 |
$22 | $30 | $58 | |
$24 | $23 | ||
International Equity
Sector Equity
Nontraditional Equity
Allocation
$(27.2)
$3.7
$(5.0) $(5.1)
$(0.2)
$2.1
$(11.9)
$0.3
$- | < $(0) | $(0) | $(2) | ||||
$(64) | $(60) | $(42) | |||||
$(50) | |||||||
$(60) | |||||||
$(52) | $(33) | ||||||
$(100) | |||||||
$(13) | |||||||
$(12) | |||||||
$(16) | $(106) | ||||||
$(150) | $(115) | ||||||
$(132) | |||||||
$(200) | Dec-22 | Nov-22 | Oct-22 | Dec-22 | Nov-22 | Oct-22 | |
Annualized Equity | (10.7%) | (10.6%) | (8.0%) | 3.2% | 3.2% | 8.8% | |
Organic | FI | (18.0%) | (11.4%) | (20.6%) | 12.4% | 17.4% | 16.2% |
Growth | Other | (12.5%) | (10.9%) | (10.5%) | (1.5%) | (1.9%) | (7.4%) |
Taxable Bond
Municipal Bond
$(36.3)
$(16.0)
$18.3
$4.1
Annual Net Flows by Asset Class (2021 - 2022)
Active Mutual Funds | ETFs & Passive Mutual Funds | |||
$1,500 | $1,048 | |||
$1,000 | $642 | $16 | ||
$324 | ||||
$34 |
Alternative
Commodities
Miscellaneous
$(2.0)
$0.7
$(2.3) $(1.5)
$0.1
$0.2
$500 | $30 | $204 | $708 | |||
$312 | $404 | |||||
$- | ||||||
$(407) | $(177) | |||||
$166 | ||||||
$(500) | ||||||
$(539) | ||||||
$(1,000) | $(65) | |||||
$(1,500) | $(1,012) | |||||
2022 | 2021 | 2022 | 2021 | |||
Annualized Equity | (4.5%) | (2.2%) | 3.9% | 8.9% | ||
Organic | FI | (12.2%) | 7.6% | 9.1% | 16.5% | |
Growth | Other | (3.8%) | 2.0% | 10.8% | 6.5% |
Note: "Other" includes Allocation, Alternative, Commodities, and Miscellaneous
Source: Morningstar Direct, Piper Sandler analysis
PIPER SANDLER | 4
U.S. Long-Term Retail Active & Passive Net Flows (cont'd)
($ in Billions) | ||||||||
Top Active Categories | Top Passive Categories | |||||||
Net Flows | Annualized Organic Growth | Net Flows | Annualized Organic Growth | |||||
Dec-22 | 2022 2021 | Dec-22 | 2022 2021 | Dec-22 | 2022 | 2021 Dec-22 | 2022 2021 |
1. | Derivative Income | $ | 2.3 | $ 20.7 | $ | 8.2 |
2. | Intermediate Core Bond | 1.3 | (6.8) | 39.4 | ||
3. | Multistrategy | 0.8 | 4.1 | 5.1 | ||
4. | Options Trading | 0.2 | 9.1 | 14.3 | ||
5. | Long Government | 0.2 | 0.4 | (0.4) |
86% | 140% | 155% | 1. | Large Blend | $ | 9.3 | $143.9 | $167.8 | 3% | 3% | 5% |
4% | (2%) | 10% | 2. | Intermediate Core Bond | 8.4 | 24.0 | 86.8 | 13% | 3% | 11% | |
28% | 14% | 20% | 3. | Large Value | 8.2 | 76.3 | 77.8 | 15% | 13% | 19% | |
4% | 18% | 44% | 4. | Ultrashort Bond | 3.6 | 46.6 | (2.1) | 49% | 101% | (4%) | |
43% | 6% | (6%) | 5. | Long Government | 2.9 | 46.2 | 23.6 | 34% | 55% | 38% |
Bottom Active Categories | Bottom Passive Categories | |||||||||||||||||||||||||||||
Net Flows | Annualized Organic Growth | Net Flows | Annualized Organic Growth | |||||||||||||||||||||||||||
Dec-22 | 2022 | 2021 | Dec-22 | 2022 | 2021 | Dec-22 | 2022 | 2021 | Dec-22 | 2022 | 2021 | |||||||||||||||||||
1. | Large Growth | $ (11.3) | $ (95.1) | $ (83.6) | (9%) | (5%) | (5%) | 1. | Foreign Large Blend | $ (4.2) | $ 34.7 | $110.2 | (5%) | 3% | 11% | |||||||||||||||
2. | Foreign Large Growth | (8.6) | (43.2) | 0.4 | (23%) | (7%) | 0% | 2. | High Yield Bond | (2.7) | (4.8) | 3.2 | (48%) | (6%) | 4% | |||||||||||||||
3. | Short-Term Bond | (7.3) | (68.0) | 54.0 | (23%) | (14%) | 13% | 3. | Financial | (1.5) | (13.6) | 22.5 | (28%) | (15%) | 47% | |||||||||||||||
4. | Diversified Emerging Mkts | (6.1) | (19.7) | 22.1 | (22%) | (4%) | 5% | 4. | Technology | (1.5) | (6.0) | 10.8 | (11%) | (3%) | 6% | |||||||||||||||
5. | Bank Loan | (5.4) | (9.8) | 44.2 | (64%) | (9%) | 70% | 5. | Large Growth | (1.5) | 29.5 | 37.7 | (3%) | 4% | 7% |
Largest Active Categories | Largest Passive Categories | |||||||
Net Flows | Annualized Organic Growth | Net Flows | Annualized Organic Growth | |||||
Dec-22 | 2022 | 2021 Dec-22 | 2022 2021 | Dec-22 | 2022 | 2021 Dec-22 | 2022 2021 |
1. | Large Growth | $ (11.3) | $ (95.1) | $ (83.6) |
2. | Large Blend | (2.7) | (23.7) | (39.8) |
3. | Large Value | (3.2) | (37.0) | (19.6) |
4. | Allocation--50% to 70% Equity | (4.9) | (34.3) | 10.5 |
5. | Intermediate Core-Plus Bond | (4.4) | (68.0) | 35.8 |
(9%) | (5%) | (5%) | 1. | Large Blend | $ | 9.3 | $143.9 | $167.8 | 3% | 3% | 5% |
(2%) | (2%) | (3%) | 2. | Foreign Large Blend | (4.2) | 34.7 | 110.2 | (5%) | 3% | 11% | |
(4%) | (3%) | (2%) | 3. | Intermediate Core Bond | 8.4 | 24.0 | 86.8 | 13% | 3% | 11% | |
(8%) | (4%) | 1% | 4. | Large Value | 8.2 | 76.3 | 77.8 | 15% | 13% | 19% | |
(8%) | (8%) | 4% | 5. | Large Growth | (1.5) | 29.5 | 37.8 | (3%) | 4% | 7% |
Source: Morningstar Direct, Piper Sandler analysis
PIPER SANDLER | 5
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Piper Sandler Companies published this content on 18 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 January 2023 16:19:03 UTC.