MassMutual to create $260bn firm under Barings brand 10 March 2016

MassMutual to create $260bn firm under Barings brand

MassMutual's institutional asset management arms are set to become a single entity, creating a firm with $260bn AUM under the Barings brand.

MassMutual Financial Group, the marketing name for Massachusetts Mutual Life Insurance Company, said it is combining its affiliates Babson Capital Management, including its subsidiaries Cornerstone Real Estate Advisers and Wood Creek Capital Management, with Baring Asset Management to create a multi-asset investment management firm led by Tom Finke, current chairman and CEO of Babson.

According to the statement, the firm expects there will be no change in investment leadership, but distribution and marketing capabilities will be combined to support the new firm.

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The Barings brand and logo will be "refreshed" and the group expects the initial phase of integration to be complete by Q4 this year, subject to approval.

The united group will have offices in 20 countries, over 1,700 professionals and be head-quartered in Charlotte, North Carolina.

David Brennan chairman and CEO of Barings, who will retire as planned during the summer of 2016, said: "This is an exciting opportunity for the Barings organisation to combine with its affiliates to create a new, more diversified global manager.

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"It has been an honour leading this impressive organisation over the past 14 years, and I look forward to working with the new management team in the coming months."

Finke added: "This combination is highly complementary in terms of asset classes, distribution footprint, and shared commitment to excellence.

"Together, Babson, Barings, Cornerstone, and Wood Creek offer institutional and retail investors worldwide a compelling array of investment offerings. As a unified firm we will be better able to deliver our diverse and global investment offerings to clients."

Darius McDermott, MD of Chelsea Financial Services, commented: "This seems to be good news for Barings and the UK part of this deal.

"The four businesses that are being merged are very complementary and have very little overlap in terms of product. As the Barings name is to be retained and even used more, it looks like a very strong commitment to the brand from the parent company."