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.
Affiliated Managers (AMG) Completes Partnership With Parnassus
Read MoreHide Full Article
Affiliated Managers Group (AMG - Free Report) has completed its partnership with Parnassus Investments, one of the largest sustainable investing fund managers in the United States. In July 2021, Affiliated Managers announced that it would acquire a majority equity stake in Parnassus. However, the terms of the deal were not disclosed.
Benjamin E. Allen and Todd Ahlsten, the CEO and CIO of Parnassus, have entered into long-term employment agreements with the firm.
Based in San Francisco, Parnassus mixes fundamental, and environmental, social and governance (ESG) research to achieve robust risk-adjusted returns for clients. With more than 35 years of experience in responsible investing, the firm has almost $49 billion of assets under management (AUM).
With the addition of Parnassus, Affiliated Managers’ ESG-focused AUM balance is expected to increase to $80 billion.
At the time of the deal announcement, it was estimated that the transaction would contribute $70 million to Affiliated Managers’ adjusted earnings before interest, taxes, depreciation and amortization as well as $1.30 to economic earnings per share in 2022.
Our Take
At present, ESG investing is in vogue. The pandemic has shifted investors’ interest toward the companies that perform well on ESG targets.
Notably, ESG investing is one of the fastest-growing segments in the investment management industry. ESG-focused funds have attracted huge investments across the globe in recent times.
Affiliated Managers’ other investments in sustainable investing fund managers are interests in Boston Common Partners and Inclusive Capital Partners. Backed by these and other similar investments, the company is expected to continue generating meaningful growth over time. Further, rising demand for equity and alternative strategies among institutional clients is expected to keep supporting its profitability.
So far this year, shares of Affiliated Managers have gained 47.1%, outperforming 22.7% growth recorded by the industry.
Many finance companies have started to come ahead and participate in ESG investing over the past couple of years. In June 2021, BlackRock (BLK - Free Report) announced a deal to acquire the Climate Change Scenario Model of Baringa Partners and integrate the same into its Aladdin risk management system. Likewise, JPMorgan (JPM - Free Report) inked a deal to acquire San Francisco-based start-up, OpenInvest, which provides ESG investment management products.
In November 2020, Moody’s (MCO - Free Report) acquired a minority stake in MioTech as part of its efforts to offer innovative ESG and know-your-customer solutions to the financial markets of China. Also, in 2019, it acquired a majority stake in VigeoEiris, a global leader in ESG research, data and assessments.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Affiliated Managers (AMG) Completes Partnership With Parnassus
Affiliated Managers Group (AMG - Free Report) has completed its partnership with Parnassus Investments, one of the largest sustainable investing fund managers in the United States. In July 2021, Affiliated Managers announced that it would acquire a majority equity stake in Parnassus. However, the terms of the deal were not disclosed.
Benjamin E. Allen and Todd Ahlsten, the CEO and CIO of Parnassus, have entered into long-term employment agreements with the firm.
Based in San Francisco, Parnassus mixes fundamental, and environmental, social and governance (ESG) research to achieve robust risk-adjusted returns for clients. With more than 35 years of experience in responsible investing, the firm has almost $49 billion of assets under management (AUM).
With the addition of Parnassus, Affiliated Managers’ ESG-focused AUM balance is expected to increase to $80 billion.
At the time of the deal announcement, it was estimated that the transaction would contribute $70 million to Affiliated Managers’ adjusted earnings before interest, taxes, depreciation and amortization as well as $1.30 to economic earnings per share in 2022.
Our Take
At present, ESG investing is in vogue. The pandemic has shifted investors’ interest toward the companies that perform well on ESG targets.
Notably, ESG investing is one of the fastest-growing segments in the investment management industry. ESG-focused funds have attracted huge investments across the globe in recent times.
Affiliated Managers’ other investments in sustainable investing fund managers are interests in Boston Common Partners and Inclusive Capital Partners. Backed by these and other similar investments, the company is expected to continue generating meaningful growth over time. Further, rising demand for equity and alternative strategies among institutional clients is expected to keep supporting its profitability.
So far this year, shares of Affiliated Managers have gained 47.1%, outperforming 22.7% growth recorded by the industry.
Currently, Affiliated Managers carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Finance Companies Taking Similar Steps
Many finance companies have started to come ahead and participate in ESG investing over the past couple of years. In June 2021, BlackRock (BLK - Free Report) announced a deal to acquire the Climate Change Scenario Model of Baringa Partners and integrate the same into its Aladdin risk management system. Likewise, JPMorgan (JPM - Free Report) inked a deal to acquire San Francisco-based start-up, OpenInvest, which provides ESG investment management products.
In November 2020, Moody’s (MCO - Free Report) acquired a minority stake in MioTech as part of its efforts to offer innovative ESG and know-your-customer solutions to the financial markets of China. Also, in 2019, it acquired a majority stake in VigeoEiris, a global leader in ESG research, data and assessments.