Several U.S. mutual funds have European parents (see chart below). What does the recent market volatility, particularly, mean for those fund firms?

A case in point is Los Angeles-based TCW, which is backed by French bank Societe Generale. SocGen's stock (PINK:SCGLY) has dropped more than 40 percent in the past 16 days, taking hits last week after reporting a profit dip (see Bloomberg) and again today as rumors swirl about a possible downgrading of France's government debt (see Bloomberg, Reuters and Reuters again). Today SocGen executives held a press conference to reassure investors that the bank is solvent.

A spokeswoman for SocGen referred inquiries to TCW, and a spokesman for TCW told MFWire.com that the rumors swirling around SocGen "have no impact on TCW."

Yet even in a worst-case, nightmare, collapse scenario for SocGen, TCW executives should draw comfort from Neuberger Berman's example: when Lehman Brothers collapsed, Neuberger executives seized the opportunity to do a management-led leveraged buyout (LBO), one that looks pretty successful two years later [see MFWire.com, 5/12/2011]. So if disaster strikes, TCW might just find itself independent.

European Parents of U.S. Mutual Fund Firms
Ticker	Company (Fund Firm/B-D)	Share Price 8/10/2011	Percentage Change Since 7/25/2011
PINK:AZSEY	Allianz SE (Pimco)	10.13	-25.09
NYSE:CS	Credit Suisse Group AG	28.78	-23.5
NYSE:DB	Deutsche Bank AG (DWS)	40.36	-27.17
LON:OML	Old Mutual plc	104.8	-20.86
PINK:SCGLY	Societe Generale SA (TCW)	6.46	-40.37
LON:SDR	Schroders plc	1404.17	-16.1
NYSE:UBS	UBS AG	13.61	-22.27
BIT:UCG	Unicredit SpA (Pioneer)	0.967	-26.63
Source: Google Finance

 

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