November 5, 2001 (PLANSPONSOR.com) - Diversified US
equity funds rebounded in October, gaining 3.8% on average
after a 17.8% plunge in the third quarter, according to
Lipper.
However, the category, which represents about two-thirds
of US fund assets, is still down 19.4% year-to-date, the
worst performance since 1974.
Value funds continued to outpace growth strategies for
the year, gaining 3.9% in October and up 3.1% in 2001. That
performance is second only to gold funds, which are up
13.6%.
Small-cap growth stock funds were lifted by technology
stocks, gaining 8% during the month. Large cap growth funds
rose 4% during the month but are down nearly 30%
year-to-date, while mid-cap growth funds gained 6.7% for
the month, trimming their year-to-date losses to about
30%.
Science and technology funds jumped 16.6% but are still
down an average 46.3% year to date.
Health and biotech funds cut their 2001 losses to 17.4%,
thanks to a 5.4% increase during the month, while natural
resources funds gained 8% in October, reducing year-to-date
declines to 14.6%.
Sector funds rose 6.3% for the month, while world equity
funds gained 3.4% on average, cutting year-to-date losses
to 23.3%.
April 11, 2001 (PLANSPONSOR.com) - France's Societe
Generale SA has agreed to buy 51% of TCW, parent of Trust Co.
of the West, the latest European acquisition of a US asset
management firm.
Los Angeles based TCW has roughly $80 billion in assets
under management, with roughly $34 billion each in US stock
and bond funds, and about $5 billion each in alternative
and international investments.
The deal follows a late March acknowledgment (see
NewsDash Daily Roundup – March 30
) that the two firms were discussing a “possible alliance”
that would include “marketing and cross-selling Societe
Generale Asset Management products in the US and TCW
products in Europe.”
Currently valued at $880 million, Societe Generale said
that the agreement includes a clause allowing for the
initial purchase price to be increased if TCW’s profits in
2001 and 2002 beat current expectations.
Societe Generale will pay for the stake with 14.1
million of its own shares, giving TCW shareholders a 3.33%
stake in the bank.
Looking ahead
Over the next five years, the French financial giant
then plans to boost its stake to about 70% in four equal
installments, and could wind up paying an additional $1.6
billion for that stake.
However, the value could fluctuate over time since the
transaction is structured with an “earn out” provision that
adjusts the value of the back end of the deal depending on
the performance of TCW.
The deal calls for employees of closely held TCW to
continue to own 30% of the money-management firm.
TCW and its portfolio managers are expected to retain
considerable autonomy after the acquisition. Robert A. Day,
TCW’s chairman and chief executive, will continue to run
TCW with his existing management team, though Societe
Generale will add two of its representatives to TCW’s
board.
On December 31, TCW’s roster of institutional clients
included:
Adolph Coors
CalSTRS
Colorado Public Employees Retirement Association
The Duke Endowment
The John D. and Catherine T. MacArthur
Foundation
New York State Common Retirement Fund.
General Mills
Haliburton
Hallmark Cards
Michigan State University
Pfizer
Sprint
Xerox
Failed attempt
Societe Generale teamed up with Spain’s Banco Santander
Central Hispano SA to try to acquire money manager Fayez
Sarofim, but the deal fell apart when Fayez decided not to
sell (see
Fayez Sarofim Says “No Sale”
).
Currently, SocGen has a small asset-management business
with about $2.1 billion in assets, thanks to its 1998
acquisition of US investment boutique Cowen & Co,
according to Dow Jones.