The US organization is said to be in talks to buy the asset management arm of Germany's Munich Re.

Guggenheim Partners is in talks to acquire the asset-management arm of German insurer Munich Re in a deal that would double the firm’s investments business, the Wall Street Journal reported, citing unnamed sources.

Munich Re declined to comment to Family Wealth Report; Guggenheim did not reply at the time of going to press but this publication may update in due course today.

The news article said that under such a deal, Munich Re would receive equity in Guggenheim. Munich Re, whose investments business manages $290 billion, is one of several European and Asian firms that
Guggenheim has talked to in its bid to broaden the reach of its asset-management business outside the US, the article said.

Such a move, if confirmed, highlights how economies of scale are increasingly important for asset managers at a time when fees have been squeezed by the ascent of “passive”, low-cost index-tracking fund management models, particularly during the recent equity market bull run. 

The talks with Munich Re are in early stages and it is not clear if a deal will be reached.