Rydex Investments, a fund firm with some $16 billion in assets under management, is near a deal to sell itself for about $800 million to $1 billion,
Rydex could be sold to either
, according to people familiar with Rydex.
Rumors have floated about a possible sale of the mutual and ETF manager over the past few years since its founder, Skip Viragh, died of pancreatic cancer in 2004. Followers of the company say a sale announcement is expected imminently.
A spokeswoman at Rydex says the fund company is still owned by the Viragh family and declined to comment further. Rydex is run by CEO Carl Verboncoeur.
A message left with an E*Trade spokesman was not returned, nor was a call to a spokesman at Invesco.
Founded in 1993, the closely held Rockville, Md.-based investment management company manages more than 80 mutual funds and exchange-traded funds.
Not solely a conduit for day traders, online brokerage houses such as E*Trade and
have been adding a wider array of services and products in an attempt to lure more investors. Last year E*Trade agreed to acquire Dallas-based Retirement Advisors of America to enhance its growing wealth management services business.
E*Trade has been indirectly tied to other merger talk. Alternative investment funds Jana Partners and SAC Capital have agitated for a merger of TD Ameritrade with either
or E*Trade. Ameritrade has said it would be "deliberate" in making any strategic moves.
Global investment management company Invesco, which recently changed its name from Amvescap, has some $491 billion in assets under management.
Additional details about the deal, including financial advisers involved, could not be learned.