Broadridge Financial Solutions has signed an agreement to acquire the Fiduciary Services and Competitive Intelligence unit from Thomson Reuters Lipper. Broadridge will integrate the Lipper capabilities within its mutual fund and retirement business, officials report.
The Lipper business unit offers global market intelligence for fund industry flows by country and distribution channel, Broadridge officials say. Thomson Reuters also provides 15(c) advisory contract renewal services for validating and benchmarking fee and expense agreements to more than 250 mutual fund families, including three-quarters of the world’s largest mutual fund organizations.
With the acquisition, Broadridge will expand its existing Access Data suite of market intelligence solutions, say Broadridge officials. This will include compliance and reporting tools that cover 90 percent of all U.S. long-term mutual fund assets and 95 percent of all exchange traded fund (ETF) assets.
The agreement between Broadridge and Thomson Reuters also includes “a long term content and brand licensing services agreement in which Thomson Reuters Lipper will provide Broadridge with data on investment product classifications, pricing, performance, benchmarking, product asset positions, and product flows, ensuring continuity of underlying content and methodology,” say Broadridge officials.
The acquisition is intended to “reinforce Broadridge’s position as one of the leading providers of data solutions and market intelligence for the mutual fund sector, and expand our footprint globally,” says Richard J. Daly, president and CEO of Broadridge in a statement. The move is aligned with the company’s long-term strategy to grow its enterprise data and analytics capabilities. “As regulatory pressures increase and new digital opportunities emerge, these solutions will help our clients mitigate risks, meet their fiduciary responsibilities and enhance sales productivity,” Daly adds.
Thomson Reuters will continue to provide fund data, analytics and research through desktop solutions such as Thomson Reuters Eikon, Thomson One, Lipper for Investment Management, LANA and feeds, including support via “licensed third-party platforms,” said Lars Asplund, a managing director at Thomson Reuters. “We look forward to the ongoing relationship with Broadridge.”
The acquisition is expected to close during Broadridge’s fourth fiscal quarter and is subject to customary closing conditions, including the termination or expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, Broadridge officials say.
The vendors did not disclose the terms of the agreement.
Broadridge provides investor communications and securities processing and business process outsourcing solutions to broker-dealers, banks, mutual funds and corporate issuers globally. Broadridge’s infrastructure underpins proxy voting services for over 90% of public companies and mutual funds in North America, and processes more than $5 trillion in fixed income and equity trades per day, officials say.
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