T. Rowe Price Group to acquire Oak Hill Advisors (OHA), an alternative credit manager with $ 53 billion (45.7 billion euros) in assets under management.
OHA will become T. Rowe Price’s private markets platform, operating as a stand-alone company with autonomy over its investment process.
Under the terms of the transaction, T. Rowe Price will pay up to approximately $ 4.2 billion for 100% of the equity of OHA and certain other entities that have common ownership, with $ 3.3 billion payable. at the close.
“Scale is increasingly important as a competitive advantage in seeking funding opportunities and generating differentiated returns in alternative credit markets,” said T. Rowe Price.
“T. Rowe Price’s comprehensive portfolio of equity, fixed income and multi-asset solutions, along with its global footprint, should facilitate these advantages of scale, providing greater opportunities for investors, borrowers. and financial sponsors.
LGIM launches first Indian local currency ETF in Europe
Legal & General Investment Management (LGIM) has launched what it says is the first ETF in Europe to offer dedicated exposure to Indian government bonds, “a convenient and transparent way for UK and European investors to access the market. growing government bonds in the country’s local currency. ”.
India is the second largest emerging market and the six largest economy in the world. It is also the third largest emitter of greenhouse gases, after China and the United States.
Its sovereign bond market has grown rapidly in recent years and is expected to continue to grow due to positive structural trends, LGIM said. Historically, there has been a weak correlation between Indian local currency bonds and other emerging and developed market debt.
“Clear progress has been made by the Indian authorities to allow easier access for foreign investors and the country is on track to be included in major bond indices,” said Lee Collins, head of bond indices at LGIM. “We believe the time has come to offer this product to investors.”
Net-zero a target for a quarter of the largest asset managers
Nearly a quarter of the top 500 asset managers have set net zero targets for investing and more ambitious targets are expected, NN Investment Partners said, according to its research.
Asset manager used natural language processing to analyze more than 10,000 responsible investing publications, finding asset managers mentioning CO2 33% of their ESG publications this year compared to 6% in 2016.
According to NN IP, analysis of the text showed that asset managers primarily focus on setting medium-term goals for the proportion of their investments to be managed in accordance with a net zero policy, with 2025 and 2030 often being mentioned as target dates.
“Asset managers have high expectations for the results of the Glasgow climate change conference,” said Sebastiaan Reinders, head of investment science at NN IP.
“The 150,000 paragraphs contain diverse but optimistic views on the expected results of COP26 in the real world. Research shows that professional investors expect coordinated, meaningful and achievable agreements on climate policy to be reached this time around. “