Invesco to Acquire OppenheimerFunds From MassMutual Life
October 19, 2018 by Charles Stein, John Gittelsohn and Katherine Chiglinsky
Invesco Ltd. is betting $5.7 billion that active management has a bright future.
Invesco agreed to pay about that amount in a deal with Massachusetts Mutual Life Insurance Co. to acquire its OppenheimerFunds, which specializes in picking stocks and bonds especially in the international arena. At a time when many investors are deserting active funds for products that track indexes, Invesco Chief Executive Officer Martin Flanagan is convinced that active funds will continue to play a critical role in the portfolios of retail and institutional customers.
“Investors are looking for a broad range of ways to have us meet their outcomes — it is high-conviction active management, it is passive and it is alternatives,” Flanagan said in a telephone interview.
Roger Crandall, CEO of MassMutual, agreed. “We’re convinced the entire world doesn’t go to one giant, cap-weighted index.”
Invesco shares were up 3.8 percent to $21.74 as of 10:51 a.m. in New York.