Acquisition Puts a Canadian Firm on the U.S. Mutual Fund Map
Reported by Armie Margaret Lee
Toronto-based Foresters is now in the mutual fund business in the U.S., thanks to an acquisition. On January 19, the life insurance provider completed its purchase of New York City-based First Investors Consolidation Corporation, parent of First Investors Management Company, Inc. FIMCO's product line includes 27 retail mutual funds.
[SEC filing]
First Investors also offers life insurance services.
"The acquisition of First Investors further strengthens Foresters market position in the United States and provides us with access to the U.S. asset management market currently estimated at US$18 trillion," said Foresters president and
CEO George Mohacsi in a press release.
First Investors will operate as a standalone unit within Foresters's U.S. division. Chris Pinkerton, president of Foresters U.S., is relocating to head up First Investors president and CEO, in addition to his current duties.
Company Press Release
Foresters completes acquisition of New York-based
First Investors Consolidated Corporation
Toronto ON, January 20, 2011 – ForestersTM , a life insurance provider committed to the
well-being of families, and First Investors Consolidated Corporation today announced
completion of the agreement under which Foresters has acquired a 100% ownership
interest in First Investors and its U.S. asset management and life insurance operations. The
transaction, which closed January 19, 2011, has successfully met a number of conditions,
including regulatory approvals in the United States and Canada, and First Investors fund
shareholder approval.
First Investors is a privately held, diversified, financial services organization founded in
1930. With headquarters in New York City, First Investors has approximately 400 home
office employees and assets under management of US$7.0 billion. The acquisition includes
First Investors’ holding company and its family of companies including: a registered brokerdealer,
a registered investment advisor, a transfer agent and a life insurance company.
Foresters President and CEO George Mohacsi said: "Today's announcement represents a
major development for Foresters. First Investors is a successful investment management and
life insurance organization with a significant national distribution network that targets the
same demographic market as Foresters.
Kathryn S. Head, Chairman and CEO of First Investors, said: "We are delighted to have
concluded this transaction and look forward to working together with such a sound and
compatible business partner. Foresters is an excellent match for First Investors in terms of
operating philosophy, target markets, products and capabilities and has the capital structure
and financial resources to position First Investors for future growth and success."
The First Investors organization includes more than 700 sales professionals operating out of
46 sales offices in 26 states. Through its registered representatives, First Investors provides
investment management and life insurance services to the middle market. It offers 27 retail
mutual funds, as well as 12 funds that serve as sub-accounts for its portfolio of variable
products.
First Investors will continue to operate as a standalone entity within Foresters U.S. Division.
Chris Pinkerton, President of Foresters U.S. Division, is relocating to lead First Investors as its President and CEO, in addition to his current responsibilities.
Mr. Pinkerton indicated that First Investors registered representatives who are life licensed
will now have the opportunity to market Foresters life insurance products, in addition to
the current range of First Investors financial products.
About Foresters
Founded in 1874 as a fraternal benefit society, ForestersTM champions the well-being of
families through quality life insurance, unique member benefits and inspiring community
activities. Foresters has assets of $6.2 billion with liabilities of $4.8 billion resulting in a
surplus of $1.4 billion (all figures in Canadian dollars as of December 31, 2009) and
maintains an "A" (Excellent) rating by A.M. Best*. Foresters shares its financial strength with
more than 765,000 members in Canada, the United States and the United Kingdom.
Foresters Equity Services, Inc.†, a wholly owned subsidiary of Foresters, offers investment
products in the U.S. Unity Life of Canada‡, a wholly owned subsidiary of Foresters,
represents Foresters in Canada. For more information, please visit www.foresters.com.
About First Investors Consolidated Corporation
First Investors Consolidated Corporation, together with its subsidiaries, is a privately-held
diversified financial services organization that provides investment management services to
the broad middle market as the investment advisor to, and the distributor for, the First
Investors family of mutual funds and life insurance products. The First Investors family of
companies includes: First Investors Corporation (FIC) a registered broker-dealer; First
Investors Management Company, Inc. (FIMCO), a registered investment advisor responsible
for portfolio management of the FI funds; Administrative Data Management Corporation
(ADM), a transfer agent and First Investors Life Insurance Company (FIL). FIL maintains an
"A-" (Excellent) rating by A.M. Best*.
Since its founding in 1930, First Investors has followed the guiding principle of personal
service to connect “Main Street to Wall Street” by helping middle market investors reach
their financial goals. With corporate headquarters in New York City and administrative
offices and a data center in Edison, New Jersey, the company has assets under management
(AUM) of US $7.0 billion on behalf of 500,000 accounts. The company’s web address is
www.firstinvestors.com.
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