Deals & People January 12, 2012

Raymond James to Acquire Morgan Keegan & Co.

Raymond James Financial Inc. has agreed to acquire Morgan Keegan & Company Inc. and related affiliates from Regions Financial for $930 million. 
Reported by

The acquisition expands Raymond James’ private client wealth management and capital markets businesses. The addition of Morgan Keegan’s more than 1,000 private client financial advisers increases Raymon James’ adviser count to more than 6,000.

As part of the merger, Morgan Keegan CEO John Carson will join Raymond James Financial as president and will oversee Fixed Income and Public Finance. Other senior leaders from Morgan Keegan will be joining the firm in roles to be determined.

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“While our preference is generally organic growth, we have used strategic mergers to grow throughout our history when the timing and pricing are right and, most importantly, when there is a strong cultural fit and clear path for integration,” said Paul C. Reilly, Raymond James CEO.

Raymond James and Regions will maintain a strategic referral relationship.

 Raymond James’ Fixed Income and Public Finance businesses will be centered in Memphis, and the firm intends to continue to operate a regional support center there.

The transaction is expected to close on or about March 30, 2012, subject to regulatory approvals and other customary conditions.

 

Data & Research January 12, 2012

Canadians More Confident About Retirement than Americans

Nearly 60% of Canadians are confident in their ability to save for retirement versus fewer than 40% of Americans. 
Reported by

These statistics are the results of a survey released by BMO Financial Group on a cross-border study examining how Canadians and Americans feel about planning and saving for retirement.

The study found 71% of Canadians are concerned about the performance of their Registered Retirement Savings Plan (RRSP), while almost 90% of U.S. residents express similar concerns about the performance of their 401(k).

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During a press call, Tina Di Vito, head of the BMO Retirement Institute said, “People are wondering if they will ever be able to save enough for retirement.”

The survey also found that half of Canadians and Americans say they have or may have to delay their retirement and/or work part-time during retirement due to a shortage of retirement savings.

“Despite the effect that the 2008 global recession had on investors’ abilities to save for retirement, the Canadian economy has fared significantly better than what’s been seen in the U.S.; this has contributed to our more optimistic outlook,” added Di Vito. “It’s telling, however, that half of respondents in both countries feel that they may need to delay their retirement or hold down a job during retirement.”

Additionally, the survey found almost two-thirds of Canadians have an RRSP in place, while only 34% of Americans invest in a 401(k).

Todd Perala, director, relationship management, BMO Institutional Trust Services, mentioned during the press call that as the Baby Boomer generation is hitting retirement, many are finding they will need to work longer to save.

“Employees that remain healthy enough will avoid retirement long past the retirement age,” he said. “It’s difficult to envision what this will do to the workplace. Will employers be stuck with older workers that they don’t really want? The next challenge for the retirement industry is to help predict retirement readiness.”

The Canadian survey was conducted by Leger Marketing from November 21 to 24, 2011, with a sample of 1,520 Canadians, 18 years of age or older. The U.S. survey was also conducted by Leger Marketing from November 3 to 8, 2011, with a sample of 1,032 Americans, 18 years of age or older.

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