American Century Investments acquired the mutual fund assets of Minneapolis-based Kopp Investment Advisors Monday. Terms of the deal were not disclosed, but the Kansas City, Mo.-based shop has merged the small-cap Kopp Emerging Growth Fund into the American Century New Opportunities II Fund, and assets of the large-cap Kopp Total Quality Management Fund into the American Century Equity Growth Fund.Together, the acquisitions represent $225 million in new assets for American Century. The boards of both companies unanimously approved the transaction.
American Century Senior Vice President of Business Development David Tucker said the acquisition will allow the New Opportunities II Fund to lower its shareholder fees. Because the Kopp Emerging Growth Fund has capital losses, the New Opportunities II Find will also benefit from greater tax efficiency through the acquisition, he said.
Lee Kopp, founder and chief investment advisor for Kopp Investment Advisors, said that shedding the two retail funds will help his company focus on managing private accounts.