AMG Plans New Fund, SMA Platform

Boston-based Affiliated Managers Group revealed plans this week to develop a new subsidiary that creates, distributes and services mutual fund and separately managed accounts.
The new unit, formally known as Managers Investment Group, amounts to a minor sea change in AMG's business tactics, which mainly focus on bringing distribution muscle to boutique investment firms in exchange for a stake in their operations.
By creating Managers Investment Group, AMG plans to develop a servicing hub for at least 75 mutual funds and separately managed accounts now sold through banks, brokerage firms and independent distributors.
"Through Managers, we will bring together the strengths of our collective businesses to expand our product offerings and access new segments of the retail marketplace," said Nate Dalton, executive vice president in charge of affiliate development at AMG.
The soon-to-be launched platform utilizes the operational and distribution expertise of the company’s fund family ( Managers Funds), institutional investment subsidiary ( Portfolio Services Group), back-office unit ( Advantage Outsourcing Solutions) and also partners with the marketing division of Rorer Asset Management.
Employing about 30 executives, Managers Investment Group includes Bruce Aronow of Rorer, Peter Lebovitz of Managers Funds and John Streur from Portfolio Services. In addition to distributing single and multi-manager investment vehicles, Managers Investment Group will also market a suite of asset allocation approaches now sold through each of the three firms.