BlackRock [see profile]
is buying out Bank of America
's stake in BlackRock, and that could mean good things for the broker-dealer distribution of its mutual funds. Analysts pointed out to InvestmentNews
' Jessica Toonkel
that the $2.54-billion deal (unveiled yesterday
) will free BlackRock from association with BofA's Merrill Lynch
wirehouse, which may make the mutual fund firm a more attractive partner for Merrill's wirehouse competitors.
"They are no longer owned by a competitor, and that's going to make it a lot easier to go to the other platforms and sell their funds," Morningstar
analyst Gregory Warren
"If you have a fund that is from a firm, that is a competitor, there is going to be a bias," agreed Alois Pirker
, a senior analyst at Aite Group
. "Even with a different brand, biases take awhile to go away."
"Now they are going to have much more flexibility and freedom with how they approach the business," added Rich DeSalvo
, an independent consultant.
Neil Anderson, Managing Editor
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