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Barclays bond index unit, which tracks assets with market value of $13 trillion, hits market; may fetch $400 million: sources

Barclays bond index unit hits market; may fetch $400 million: sources

NEW YORK – Barclays Plc has launched a long-anticipated sale process for its Index, Portfolio and Risk Solutions (IPRS) business, which could yield around $400 million for the UK bank, according to people familiar with the matter.

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1 HOUR 54 MIN AGO

NEW YORK – Barclays Plc has launched a long-anticipated sale process for its Index, Portfolio and Risk Solutions (IPRS) business, which could yield around $400 million for the UK bank, according to people familiar with the matter.

A process for the unit kicked off in early June with indications of interest from prospective bidders due later this month, the people said this week, asking not to be named because the matter is not public.

The business has attracted preliminary interest from several parties, including MSCI Inc, Standard & Poor’s , FTSE, Markit Ltd , Bloomberg LP and Thomson Reuters Corp , Interactive Data Corp the people added.

Reuters first reported in November that Barclays began exploring options for the index business following an approach from MSCI, another index business.

A Barclays spokesman declined to comment. Representatives for MSCI, Markit, Bloomberg and Thomson Reuters did not immediately respond to requests for comment. Representatives from FTSE, Standard & Poor’s and Bloomberg declined to comment.

The index business Barclays intends to sell includes a basket of over 98 major indexes, according to its website. The U.S. Aggregate Bond Index, which Barclays bought as part of the Lehman Brothers acquisition during the financial crisis, is among the platform’s best-known offerings.

The index business, known as a market leader, would attract a wide range of buyers such as equity indexes, and investment houses with distribution platforms, people familiar with the matter have said.

But other index providers are also looking to ramp up their offerings. FTSE, which is owned by the London Stock Exchange Group Plc and is one of the dominant index providers in Europe, has said it wants to increase its U.S. presence substantially.

In addition, the risk solutions side of the business unit has software tools used by institutional investors to perform analysis of their holdings. The two sides of the business are seen as compatible and would not need to be split prior to a potential acquisition, the people said. REUTERS

 

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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