Morningstar has advised investors not to make changes to their portfolio following the announcement that BlackRock will acquire Barclays Global Investors (BGI), as it considers the two businesses complementary.
It is expected that successful investment teams and processes will be retained in the combined entity, according to a Morningstar statement.
Morningstar anticipates that this will include both the BlackRock Global Allocation strategy, which will continue to be run by the same investment team, and BGI’s quantitative approach to active management.
BlackRock has agreed to purchase Barclays Global Investors (BGI) for US$13.5 billion, with the combined entity to have $2.7 trillion in assets under management (AUM).
The combined product offering of BlackRock and BGI, which will be renamed BlackRock Global Investors, will include equities, fixed income, cash management and alternatives. The combined group will offer clients access to global markets through various investment channels.
