The hedge fund run by nelson peltz has taken an almost 10 per cent stake in both invesco and janus henderson, signalling it will push the struggling asset managers to explore deals in an industry facing intense pressure on fees.
The new york-based fund trian said it had met invesco chief executive martin flanagan and requested that mr peltz and trians chief investment officer, ed garden, be given seats on the asset managers board.
The group said it had also discussed certain strategic combinations, including through mergers and acquisitions, with both invesco and janus henderson, which manage $1.2tn and $336.7bn respectively.
The stakes held by trian were disclosed in filings to the securities and exchange commission on friday.
Trian also flagged the possibility that it would hold discussions with rival asset managers about potential tie-ups that could provide invesco and janus henderson, created through a merger just three years ago, the scale to compete at a time of rising competition from passive fund managers.
Profits at active asset managers have been eroded by the relentless flight of investor capital into index-tracking funds over the past decade. the cut-throat environment for traditional stock pickers has led to a handful of large passive providers controlling the lions share of the industrys assets, squeezing midsized players.
Trian said that amid the significant change taking place in the industry, groups that had significant scale and product breadth, streamlined and efficient non-investment functions, and the ability to invest in technology, growth and innovation were best placed to succeed.
It is not the first time that trian has agitated for change at a mid-tier asset manager. as an investor in legg mason, trian helped to push the us investment house towards its takeover by close rival franklin templeton last year, a deal that created a $1.5tn fund giant with the potential to compete against blackrock and vanguard.