Motivations Behind the Acquisition of Mutual Funds

Abstract

This paper studies the motivations behind mutual fund acquisitions. Results indicate that, consistent with the existing corporate mergers and acquisitions literature, a desire to seek synergy in the form of cost reduction in distribution and internal operation drives mutual fund acquisitions. In addition, acquisitions are partly driven by a desire to acquire managerial talent and a respectful performance record.

Keywords: mutual fund, acquisition, synergy

JEL Classification: G2, G23