Piper Sandler Financial Services Investment Banking

Monthly Asset & Wealth Management Report

December 2022

Aaron Dorr

Christopher Browne

Amit Jain

MANAGING DIRECTOR, GROUP HEAD

MANAGING DIRECTOR

MANAGING DIRECTOR

Tel: +1 212 466-7734

Tel: +1 212 466-7735

Tel: +1 212 466-7867

Email: Aaron.Dorr@psc.com

Email: Chris.Browne@psc.com

Email: Amit.Jain@psc.com

Jason Greco

Cameron Hoerner

DIRECTOR

DIRECTOR

Tel: +1 212 466-7967

Tel: +1 212 466-7745

Email: Jason.Greco@psc.com

Email: Cameron.Hoerner@psc.com

Asset & Wealth Management Market Pulse

Month

December 2022

November 2022

Global Asset Management Transaction Activity

Number of Transactions

Traditional Managers

3

5

Alternative Managers

7

5

Private Wealth Managers

32

21

Total Transactions

42

31

AUM Transacted ($ in Billions)

$80

$45

U.S. Long-Term Retail Fund Net Flows Activity ($ in Billions)

Equity

Active Mutual Funds

($64.1)

($59.5)

ETFs & Passive Mutual Funds

$24.4

$23.3

Fixed Income

Active Mutual Funds

($52.3)

($32.5)

ETFs & Passive Mutual Funds

$22.4

$29.9

Publicly-Traded Asset Manager Metrics

Median Stock Price Return

U.S. Traditionals

(2.4%)

11.0%

U.S. Alternatives

(12.5%)

5.2%

Median Forward P/E Multiples

U.S. Traditionals

11.5x

12.6x

U.S. Alternatives

11.6x

13.8x

Annual

2022

2021

36

71

83

79

282

247

401

397

$1,611

$3,354

($407.0)

($176.5)

$403.8

$707.5

($539.2)

$312.0

$204.3

$323.7

(21.9%)

34.7%

(37.0%)

53.3%

11.5x

10.8x

11.6x

17.7x

Comparison to Prior Period

Increase

Equal

Decrease

Notes:

Mutual f und net f low information includes U.S. open-end funds and ETFs

PIPER SANDLER | 2

Perf ormance is based on dividend-adjusted returns

Source: Piper Sandler, Morningstar Direct, FactSet

Transaction Highlights

Asset Management

  • (12/2/22) Investcorp agreed to acquire Marble Point Credit Management, a U.S.-based CLO manager ($7.8B AUM). Upon closing of the transaction, Marble Point will be combined with Investcorp Credit Management, Investcorp's global credit platform ($14B AUM)
  • (12/8/22) BNP Paribas Asset Management, the investment arm of BNP Paribas, agreed to acquire a majority stake in International Woodland Company, a Denmark-based sustainable natural resources investment manager
    ($5.8B AUM)
  • (12/13/22) Spouting Rock Asset Management, a multi- boutique manager platform, agreed to acquire Stewart Asset Management, an investment manager focused on U.S. growth equities ($251M AUM)
  • (12/19/22) iM Global Partner, a France-basedmulti-boutique asset manager, acquired a non-controlling stake in Berkshire Asset Management, investment manager specializing in dividend-focused U.S. equities ($4.0B AUA)
  • (12/19/22) Icona Capital Group, a U.K.-based alternative asset manager, acquired a 40% in Stoneweg, a Switzerland- based real estate asset manager ($5.3B AUM)

Wealth Management

  • (12/1/22) Pathstone agreed to merge with Willow Street, a Wyoming-based trust and fiduciary services firm ($35B AUA)
  • Mercer Advisors acquired:
    • (12/1/22) Regis Management Company, a California- based wealth manager ($5.0B AUM / AUA)
    • (12/6/22) Vintage Financial Services, a Michigan-based wealth manager ($850M AUM)
    • (12/7/22) Resource Planning Group, a Georgia-based wealth manager ($325M AUM)
  • Prime Capital Investment Advisors acquired:
    • (12/12/22) Professional Financial Services, a South Dakota-based wealth manager ($185M AUM)
    • (12/19/22) Liberty Wealth Advisors, a Florida-based wealth manager ($1.8B AUM)
  • (12/19/22) Emigrant Partners acquired a minority stake in F.L.Putnam Investment Management Company, a Massachusetts-based asset and wealth manager
    ($6.0B AUM / AUA)
  • (12/19/22) Bluespring Wealth Partners, a subsidiary of Kestra Financial, acquired Goldstein Advisors, a Wisconsin- based wealth manager ($700M AUM)

Source: Company press releases, news articles, company filings

PIPER SANDLER | 3

U.S. Long-Term Retail Active & Passive Net Flows

($ in Billions)

Net Flows by Category (December 2022) Monthly Net Flows by Asset Class (Oct. 2022 - Dec. 2022)

Active Mutual Funds

ETFs & Passive Mutual Funds

U.S. Equity

$(31.7)

$23.7

Equity

Fixed Income

Other

Active Mutual Funds

ETFs & Passive Mutual Funds

$100

$84

$50

$47

$53

$28

$22

$30

$58

$24

$23

International Equity

Sector Equity

Nontraditional Equity

Allocation

$(27.2)

$3.7

$(5.0) $(5.1)

$(0.2)

$2.1

$(11.9)

$0.3

$-

< $(0)

$(0)

$(2)

$(64)

$(60)

$(42)

$(50)

$(60)

$(52)

$(33)

$(100)

$(13)

$(12)

$(16)

$(106)

$(150)

$(115)

$(132)

$(200)

Dec-22

Nov-22

Oct-22

Dec-22

Nov-22

Oct-22

Annualized Equity

(10.7%)

(10.6%)

(8.0%)

3.2%

3.2%

8.8%

Organic

FI

(18.0%)

(11.4%)

(20.6%)

12.4%

17.4%

16.2%

Growth

Other

(12.5%)

(10.9%)

(10.5%)

(1.5%)

(1.9%)

(7.4%)

Taxable Bond

Municipal Bond

$(36.3)

$(16.0)

$18.3

$4.1

Annual Net Flows by Asset Class (2021 - 2022)

Active Mutual Funds

ETFs & Passive Mutual Funds

$1,500

$1,048

$1,000

$642

$16

$324

$34

Alternative

Commodities

Miscellaneous

$(2.0)

$0.7

$(2.3) $(1.5)

$0.1

$0.2

$500

$30

$204

$708

$312

$404

$-

$(407)

$(177)

$166

$(500)

$(539)

$(1,000)

$(65)

$(1,500)

$(1,012)

2022

2021

2022

2021

Annualized Equity

(4.5%)

(2.2%)

3.9%

8.9%

Organic

FI

(12.2%)

7.6%

9.1%

16.5%

Growth

Other

(3.8%)

2.0%

10.8%

6.5%

Note: "Other" includes Allocation, Alternative, Commodities, and Miscellaneous

Source: Morningstar Direct, Piper Sandler analysis

PIPER SANDLER | 4

U.S. Long-Term Retail Active & Passive Net Flows (cont'd)

($ in Billions)

Top Active Categories

Top Passive Categories

Net Flows

Annualized Organic Growth

Net Flows

Annualized Organic Growth

Dec-22

2022 2021

Dec-22

2022 2021

Dec-22

2022

2021 Dec-22

2022 2021

1.

Derivative Income

$

2.3

$ 20.7

$

8.2

2.

Intermediate Core Bond

1.3

(6.8)

39.4

3.

Multistrategy

0.8

4.1

5.1

4.

Options Trading

0.2

9.1

14.3

5.

Long Government

0.2

0.4

(0.4)

86%

140%

155%

1.

Large Blend

$

9.3

$143.9

$167.8

3%

3%

5%

4%

(2%)

10%

2.

Intermediate Core Bond

8.4

24.0

86.8

13%

3%

11%

28%

14%

20%

3.

Large Value

8.2

76.3

77.8

15%

13%

19%

4%

18%

44%

4.

Ultrashort Bond

3.6

46.6

(2.1)

49%

101%

(4%)

43%

6%

(6%)

5.

Long Government

2.9

46.2

23.6

34%

55%

38%

Bottom Active Categories

Bottom Passive Categories

Net Flows

Annualized Organic Growth

Net Flows

Annualized Organic Growth

Dec-22

2022

2021

Dec-22

2022

2021

Dec-22

2022

2021

Dec-22

2022

2021

1.

Large Growth

$ (11.3)

$ (95.1)

$ (83.6)

(9%)

(5%)

(5%)

1.

Foreign Large Blend

$ (4.2)

$ 34.7

$110.2

(5%)

3%

11%

2.

Foreign Large Growth

(8.6)

(43.2)

0.4

(23%)

(7%)

0%

2.

High Yield Bond

(2.7)

(4.8)

3.2

(48%)

(6%)

4%

3.

Short-Term Bond

(7.3)

(68.0)

54.0

(23%)

(14%)

13%

3.

Financial

(1.5)

(13.6)

22.5

(28%)

(15%)

47%

4.

Diversified Emerging Mkts

(6.1)

(19.7)

22.1

(22%)

(4%)

5%

4.

Technology

(1.5)

(6.0)

10.8

(11%)

(3%)

6%

5.

Bank Loan

(5.4)

(9.8)

44.2

(64%)

(9%)

70%

5.

Large Growth

(1.5)

29.5

37.7

(3%)

4%

7%

Largest Active Categories

Largest Passive Categories

Net Flows

Annualized Organic Growth

Net Flows

Annualized Organic Growth

Dec-22

2022

2021 Dec-22

2022 2021

Dec-22

2022

2021 Dec-22

2022 2021

1.

Large Growth

$ (11.3)

$ (95.1)

$ (83.6)

2.

Large Blend

(2.7)

(23.7)

(39.8)

3.

Large Value

(3.2)

(37.0)

(19.6)

4.

Allocation--50% to 70% Equity

(4.9)

(34.3)

10.5

5.

Intermediate Core-Plus Bond

(4.4)

(68.0)

35.8

(9%)

(5%)

(5%)

1.

Large Blend

$

9.3

$143.9

$167.8

3%

3%

5%

(2%)

(2%)

(3%)

2.

Foreign Large Blend

(4.2)

34.7

110.2

(5%)

3%

11%

(4%)

(3%)

(2%)

3.

Intermediate Core Bond

8.4

24.0

86.8

13%

3%

11%

(8%)

(4%)

1%

4.

Large Value

8.2

76.3

77.8

15%

13%

19%

(8%)

(8%)

4%

5.

Large Growth

(1.5)

29.5

37.8

(3%)

4%

7%

Source: Morningstar Direct, Piper Sandler analysis

PIPER SANDLER | 5

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Piper Sandler Companies published this content on 18 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 January 2023 16:19:03 UTC.