Industry

While the number of mergers and acquisitions between investment advisors this year has kept up with the fast pace of 2000, the dollar amounts of those deals is down dramatically.

The latest wealth management acquisition by Bank of Montreal will expand its mutual fund reach in Canada to include funds sold through independent advisors not affiliated with the bank.

The nearly $1 billion FleetBoston agreed to pay last week to acquire the asset management units of Liberty Financial, appears to be a good deal, but the real value of the acquisition will depend on how the two companies merge, according to industry observers.

Legg Mason of Baltimore announced last week that it will acquire Private Capital Management, a high-net-worth manager in Naples, Fla. in a cash and incentive deal that could reach $1.38 billion. This is Legg Mason's third acquisition of a wealth adviser within the past six months.

At 24, Carmen Caldwell has already invested some $700 in mutual funds. And unlike many investors her age, she took the initiative to set up the account herself.

State Street Corporation of Boston will acquire the portfolio accounting service business of DST System of Kansas City, Mo., the companies announced last week.

Bank of Montreal of Toronto, announced last week that it has acquired Guardian Group of Funds Ltd. from Guardian Capital Group Limited, also of Toronto. The deal is valued at U.S.$117 million in treasury shares, according to a Bank of Montreal spokesperson.

Liberty Financial Companies of Boston appears to be struggling to find a buyer for its asset management units and may have to drop its asking price in order to secure a buyer, according to industry analysts.

AMVESCAP of London announced last week that it will acquire Pell Rudman & Co. of Boston from Old Mutual PLC, also of London, in a multi-year purchase arrangement which includes a $172 million cash payment and potential asset retention payments of up to $28 million over the next two years.

Mellon Financial Corp. of Pittsburgh has announced that it will acquire Standish, Ayer & Wood, a predominantly fixed-income investment manager based in Boston in an all cash deal. Terms of the deal were not disclosed.