Amundi said the acquisition of the US institutional manager is subject to customary conditions, including informing regulatory authorities and gaining the approval of certain clients and shareholders, but hopes to complete the transaction by the end of September 2013.
“The integration of Smith Breeden constitutes a new step in Amundi’s development. It will enhance the range and the quality of our fixed income offerings for our clients, thanks to the expertise of the Smith Breeden team, which shares with Amundi common values based on a long term commitment to the clients and the delivery of sustainable performance through a disciplined research-driven investment process,” said Amundi chief executive Yves Perrier.
Amundi said the acquisition has three key objectives: the ability to offer asset management expertise in US dollar products to its institutional and corporate clients in Europe, Asia and the Middle East; secondly, a strengthening of the US component of its global fixed
income expertise; and thirdly a way to enhance the development of Amundi’s expertise in the US.
Upon completion, Smith Breeden will be renamed Amundi Smith Breeden, and be a fully-owned and controlled subsidiary within the Amundi group.
Patrick Pagni, currently Amundi’s senior regional officer for North America, will serve as executive chairman of Amundi Smith Breeden, and Mike Giarla will continue to manage the company as CEO.
The company will be part of Amundi’s fixed income organization and Amundi said there will be no change in Smith Breeden’s investment process or personnel.
