This week’s highlights feature news from the private equity sector, findings from Morningstar’s 2010 Target-Date Industry Survey as well as a few items to be on the lookout for that may potentially impact the U.S. markets.
So without further ado, lets get right to it and talk about what’s hot this week in financial services:
Asset Management: Today, Morningtar announced findings from its 2010 Target-Date Series Industry Survey, that found that target date funds are still better than other funds for retirement investors. Despite incredible scrutiny by the government and investors over the past year, more than $45 billion in new cash flowed into these funds in 2009. See the release here.
Private Equity: Big news this morning from the retail sector: Phillips-Van Heusen is acquiring Apax Partners portfolio company Tommy Hilfiger for about $3 billion (full WSJ article here). This is the first major transaction in the retail industry in years. Apex took Tommy Hilfiger private in 2006 in what was then largest private equity deal in the fashion industry to date. This deal could signal the beginning of a boom in retail PE transactions. According to BloombergBusinessWeek, U.S. comparable same store sales climbed 4.1 percent in February – the sixth straight monthly gain and the biggest in more than two years.
Markets: While mostly a quiet week with regards to the economic calendar, there are a few things on the horizon to watch for. Today Senate Banking Committee Chairman Christopher Dodd is expected to introduce a bill that will allow the committee to hold a vote prior to the Easter recess in April. And speaking of bills, if we witness a passing of the healthcare bill this week do you think we will see stocks begin to sell off? Does this signal bad news for healthcare stocks? Also this week we have the FOMC meeting on Tuesday where they will discuss their strategy behind monetary-policy. Most don’t anticipate any change in rates, however there is talk that the bank should reconsider their statement that rates will stay very low for an “extended period.” What do you think – should the FOMC reconsider their statement language?
So there you have it, the Financial Services Practice Group’s “Two Cents” on what’s news in finance this week. Stay tuned for next week!
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