Global asset management alliance expansion

What happened: Global asset management alliances are expanding rapidly. Two prominent healthcare investors, Global Healthcare Opportunities (GHO) and an Asian counterpart, merged to create the largest dedicated healthcare investment manager, with over $21bn in combined assets. Meanwhile, Legal & General (L&G) and Manulife Wealth & Asset Management (Manulife WAM) formed a global alliance to develop wealth and retirement solutions. State Street (STT) partnered with Jadwa Investment to advance asset services in Oman. Abacus Global Management took a minority stake in Manning & Napier in a longevity-focused alliance, and BlackRock integrated iCapital's alternatives tech onto its Aladdin Wealth platform. Taiwan's financial regulator called for domestic asset managers to scale up.

Market impact: These alliances drive consolidation and growth in the asset management sector, particularly in specialist areas like healthcare and alternatives. They expand distribution networks and product offerings, benefiting investors and financial advisors. The Taiwanese regulator's statement may encourage local asset managers to grow, fostering competition and potentially attracting more investment into the region.

What to watch next: Investors should monitor the earnings of these newly formed alliances and partnerships in the coming quarters to gauge their financial impact. The progress of regulatory changes in Taiwan, following the Financial Supervisory Commission's statement, will also be crucial to watch. Additionally, the evolution of BlackRock's Aladdin Wealth platform post-integration with iCapital's technology should be closely observed.