Several U.S. mutual funds have European parents (see chart below). What does the recent market volatility, particularly, mean for those fund firms?
A case in point is Los Angeles-based TCW
, which is backed by French bank Societe Generale
. SocGen's stock (PINK:SCGLY) has dropped more than 40 percent in the past 16 days, taking hits last week after reporting a profit dip (see Bloomberg
) and again today as rumors swirl about a possible downgrading of France's government debt (see Bloomberg
and Reuters again
). Today SocGen executives held a press conference to reassure investors that the bank is solvent.
A spokeswoman for SocGen referred inquiries to TCW, and a spokesman for TCW told MFWire.com
that the rumors swirling around SocGen "have no impact on TCW."
Yet even in a worst-case, nightmare, collapse scenario for SocGen, TCW executives should draw comfort from Neuberger Berman's example: when Lehman Brothers collapsed, Neuberger executives seized the opportunity to do a management-led leveraged buyout (LBO), one that looks pretty successful two years later [see MFWire.com, 5/12/2011
]. So if disaster strikes, TCW might just find itself independent.
| European Parents of U.S. Mutual Fund Firms |
| Ticker || Company (Fund Firm/B-D) || Share Price 8/10/2011 || Percentage Change Since 7/25/2011 |
| PINK:AZSEY || Allianz SE (Pimco) || 10.13 || -25.09 |
| NYSE:CS || Credit Suisse Group AG || 28.78 || -23.5 |
| NYSE:DB || Deutsche Bank AG (DWS) || 40.36 || -27.17 |
| LON:OML || Old Mutual plc || 104.8 || -20.86 |
| PINK:SCGLY || Societe Generale SA (TCW) || 6.46 || -40.37 |
| LON:SDR || Schroders plc || 1404.17 || -16.1 |
| NYSE:UBS || UBS AG || 13.61 || -22.27 |
| BIT:UCG || Unicredit SpA (Pioneer) || 0.967 || -26.63 |
| Source: Google Finance |
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