Of those reporting, Federated Investors Inc. had the most impressive performance. The most important news came from the company s proposed acquisition of the Kaufmann Fund. Federated is not the only investment adviser looking to strengthen its presence in the money-management business. On Oct. 25, Franklin Resources Inc. announced its plan to acquire Fiduciary Trust Co. International. Analysts warn that recent market weakness will lower asset managers fourth-quarter earnings.
Performance is tied with the revenues derived from assets under management.
In a bull market, assets under management for the most active investment advisers will increase, thereby driving revenues. Perhaps this is why more and more companies are looking overseas for markets and alliances to expand their revenue streams and bolster their earning potential.