Affiliated Managers Group has signed a deal to incorporate Fremont Investment Advisors, which manages approximately $3 billion of assets, into its Managers Funds platform. AMG did not disclose the terms of the deal, which is expected to close this year.
The Managers Funds, an advisor to 27 mutual funds with $5 billion of assets under management, is divided into two groups: a diversified no-load family dubbed Managers Funds and the AMG Funds, which are managed by AMG Affiliates. Both funds tap outside investment managers and are distributed directly to institutional investors and through intermediaries, including investment advisors, bank trust departments and retirement plans sponsors.
FIA, the investment advisor to Fremont Funds, also utilizes a best-of-breed manager strategy. For example, The Fremont Bond Fund is sub-advised by PIMCO bond guru Bill Gross, while the Freemont California Intermediate Tax-Free Bond fund is sub-advised by Evergreen Investment Management .
The Managers Funds is expected to open an office in San Francisco and retain a significant number of Freemonts employees and sub-advisory relationships. AMG is known for allowing its newly acquired subsidiaries to operate on an autonomous basis as a means of maintaining employee morale during the transition. Many smaller investment managers like Freemont have chosen to work with AMG as a means of acquiring greater distribution muscle without giving up the ability to make independent management decisions.
"The Fremont Funds are an excellent strategic fit with The Managers Funds, adding complementary products and geographic reach, as well as opening additional distribution channels to The Managers Funds products," said Nate Dalton, executive V.P. in charge of affiliate development at AMG. "AMG will continue to seek additional investment opportunities to leverage our product and distribution capabilities and infrastructure."