Is Henderson Group plc eyeing up Perpetual Limited?

Henderson Group plc (ASX:HGG) has announced more Australian acquisitions.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

UK-based fund manager Henderson Group plc (ASX: HGG) today announced it has agreed to acquire two boutique fund managers from IOOF Holdings Limited (ASX: IFL). In a separate deal Henderson also announced it is to take full ownership of another junior fund manager named 90 West Asset Management.

The two junior businesses being acquired from IOOF are the fixed income and equities management businesses of Melbourne-based Perennial Investment Partners. The acquisitions will add around $5.5 billion in funds under management (FUM) to the Henderson Group.

Henderson has around $185 billion of FUM globally and has made no secret of its ambition to grow into the Australian asset management market. Notably much of its Australian strategy seems to be based on acquisitive growth rather than setting up shop on its own Down Under.

In the past a possible marriage between Henderson and Perpetual Limited (ASX: PPT) has been mooted. The speculation on the basis that Henderson wants to move into Australia and Perpetual represents a ready made target as an Australian equity specialist with distribution networks and institutional relationships already in place.

Perpetual has also made baby steps into the global equities space itself recently, although the fact it also has private wealth and trustee advisory businesses tacked on would probably make it less attractive to Henderson.

Henderson has a market cap around $6.5 billion, compared to Perpetual's $2.6 billion and any potential merger would create a new powerhouse on the Australian funds management scene.

As it is the major players in terms of FUM remain the likes of AMP Limited (ASX: AMP) and the asset management arms of the big banks like Commonwealth Bank of Australia's (ASX: CBA) Colonial First State business.

While the prospect of a Henderson / Perpetual merger is interesting the chances of it happening are slim and buying either stock on the basis of it would not be sensible.

Especially when you could buy one of two small-cap stocks The Motley Fool has identified below for possibly eye-watering returns in the years ahead…

Both of which are growing fast, yet still trade on attractive valuations….

And I'm not kidding either…

Motley Fool contributor Tom Richardson has no position in any stocks mentioned.  You can find Tom on Twitter @tommyr345 The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »