US-based OppenheimerFunds has agreed to acquire fixed-income specialist SNW Asset Management for an undisclosed amount.
The acquired company, which commenced operations in 2002 as a subsidiary of Seattle-Northwest Securities, specialises in US dollar-denominated taxable and tax-exempt fixed income investment management.
As of 28 February 2017, the company managed $2.7bn in assets under management and served more than 1,800 clients.
The acquisition is expected to expand OppenheimerFunds’ fixed income offering into municipal bonds and customized separately managed accounts.
Post acquisition, SNW CEO and lead portfolio manager Eddie Bernhardt and his team will remain based in Seattle. They will report to OppenheimerFunds’ chief investment officer Krishna Memani.
Commenting on the acquisition, OppenheimerFunds chief strategy officer Peter Mintzberg said: “As with our most recent acquisitions of SteelPath and Revenue Shares, we expect that we can create significant value for all stakeholders by combining SNW’s high demand investment and service engine with OppenheimerFunds’ scale and national retail distribution."
Bernhardt said: “OppenheimerFunds’ investment boutique approach will allow SNW to maintain its independence while leveraging the resources of a larger organization to continuously deliver a superior client experience, one of the pillars of our growth. We look forward to making our strategies available through OppenheimerFunds’ trusted distribution channels, serving more clients, in a customized way.”
