Two mid-sized Korean fund management houses are acquiring rivals in a bid to gain the size needed to finance the creation of alternative and overseas investment capability.
The $5.1 billion Mirae Asset is expected to acquire SK Investment Trust Management Company SK ITMC as early as next week, while the $3 billion, Morgan Stanley-owned Landmark Trust is in talks to buy at least two domestic ITMCs.
The deals take place against a background of falling assets under management for the ITMC industry, plummeting fees and heightened foreign competition, but also in advance of liberalizing legislation that starting January will broaden distribution channels and allow for new types of product. For...
