We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
U.S. Bancorp's (USB) Arm to Acquire PFM Asset Management
Read MoreHide Full Article
As part of its efforts to strengthen its asset management arm, U.S. Bancorp’s (USB - Free Report) primary subsidiary U.S. Bank recently inked a deal to acquire PFM Asset Management LLC. The acquisition will be carried out through U.S. Bancorp Asset Management.
The deal is expected to close in fourth-quarter 2021, subject to regulatory approvals and customary closing conditions. Financial terms of the deal are kept under wraps.
PFM Asset Management caters to a wide spectrum of client relationships and product offerings including outsourced chief investment officer services, local government investment pools and separately managed accounts in both fixed income and multi-asset class strategies. Per U.S. Bancorp Asset Management head Eric Thole, these services accomplish U.S. Bank’s existing book of business apart from being able to amplify its presence nationally and bolster its position as a dominant provider of varied investment solutions in the country.
He further added: “PFM Asset Management has a great reputation in the public space, and that’s a testament to its talent. U.S. Bank is known for working with clients one-on-one to understand their unique needs and delivering customized, proactive solutions to help them meet their objectives. We’re excited to put the variety of resources offered by U.S. Bank to work for our new colleagues and clients.”
According to PFM Asset Management head Marty Margolis, the sale of the arm integrates resources of both the firms, who address the significance of garnering clients with ideal customer services. He further stated, “We’re also very pleased that U.S. Bank aligns with our fundamental belief in creating a diverse, inclusive and ethical culture.”
Notably, being the parent company of U.S. Bank, the fifth-largest commercial bank in the United States, U.S. Bancorp boasts $553 billion worth of assets as of Mar 31, 2021. As of the same date, the combined assets under management and assets under administration of PFM Asset Management and U.S. Bancorp, respectively, amounted to $325 billion. PFM’s financial advisory business will not be part of this acquisition deal.
Our Take
U.S. Bancorp’s several bank acquisitions over the past years have enabled the company to foray into untapped markets and fortify its footprint in the existing geographies. Its inorganic growth efforts combined with ongoing investments in innovative product enhancements, services and people supported its balance-sheet growth and fee-based businesses besides increasing its market share.
Over the past six months, shares of the company have gained 11.5%, underperforming 14% growth recorded by the industry.
In April 2021, Reuters reported that BlackRock, Inc. (BLK - Free Report) was mulling over a possibility of acquiring Credit Suisse Group’s asset management unit.
In the same month, Ameriprise Financial, Inc. (AMP - Free Report) announced a definitive agreement with Canada-based BMO Financial Group to take over the latter’s EMEA asset management operations for roughly $845 million to further strengthen its wealth and asset management businesses. This all-cash deal, which is expected to close in the fourth quarter of 2021, is subject to regulatory approvals in the relevant jurisdictions.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
Image: Bigstock
U.S. Bancorp's (USB) Arm to Acquire PFM Asset Management
As part of its efforts to strengthen its asset management arm, U.S. Bancorp’s (USB - Free Report) primary subsidiary U.S. Bank recently inked a deal to acquire PFM Asset Management LLC. The acquisition will be carried out through U.S. Bancorp Asset Management.
The deal is expected to close in fourth-quarter 2021, subject to regulatory approvals and customary closing conditions. Financial terms of the deal are kept under wraps.
PFM Asset Management caters to a wide spectrum of client relationships and product offerings including outsourced chief investment officer services, local government investment pools and separately managed accounts in both fixed income and multi-asset class strategies. Per U.S. Bancorp Asset Management head Eric Thole, these services accomplish U.S. Bank’s existing book of business apart from being able to amplify its presence nationally and bolster its position as a dominant provider of varied investment solutions in the country.
He further added: “PFM Asset Management has a great reputation in the public space, and that’s a testament to its talent. U.S. Bank is known for working with clients one-on-one to understand their unique needs and delivering customized, proactive solutions to help them meet their objectives. We’re excited to put the variety of resources offered by U.S. Bank to work for our new colleagues and clients.”
According to PFM Asset Management head Marty Margolis, the sale of the arm integrates resources of both the firms, who address the significance of garnering clients with ideal customer services. He further stated, “We’re also very pleased that U.S. Bank aligns with our fundamental belief in creating a diverse, inclusive and ethical culture.”
Notably, being the parent company of U.S. Bank, the fifth-largest commercial bank in the United States, U.S. Bancorp boasts $553 billion worth of assets as of Mar 31, 2021. As of the same date, the combined assets under management and assets under administration of PFM Asset Management and U.S. Bancorp, respectively, amounted to $325 billion. PFM’s financial advisory business will not be part of this acquisition deal.
Our Take
U.S. Bancorp’s several bank acquisitions over the past years have enabled the company to foray into untapped markets and fortify its footprint in the existing geographies. Its inorganic growth efforts combined with ongoing investments in innovative product enhancements, services and people supported its balance-sheet growth and fee-based businesses besides increasing its market share.
Over the past six months, shares of the company have gained 11.5%, underperforming 14% growth recorded by the industry.
Currently, U.S. Bancorp carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Finance Companies Undertaking Similar Moves
In April 2021, Reuters reported that BlackRock, Inc. (BLK - Free Report) was mulling over a possibility of acquiring Credit Suisse Group’s asset management unit.
In the same month, Ameriprise Financial, Inc. (AMP - Free Report) announced a definitive agreement with Canada-based BMO Financial Group to take over the latter’s EMEA asset management operations for roughly $845 million to further strengthen its wealth and asset management businesses. This all-cash deal, which is expected to close in the fourth quarter of 2021, is subject to regulatory approvals in the relevant jurisdictions.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>