Tuesday, September 16, 2008
Two Fund Complexes to Become One
News summary by MFWire's editors
is consolidating the operations of two of its affiliated mutual fund complexes. The Calvert Group
, best known for its socially responsible funds, will take over as the advisor of the Summit Mutual Funds
. The terms of the transaction allow for Calvert to purchase the entire operation of Summit, which includes the Apex series of retail funds and Pinnacle variable insurance portfolios.
Summitt's retail mutual funds will be merged into existing Calvert funds. Its Nasdaq-100 Index Fund
will be liquidated. The Summit Everest Fund
will also be included in Calvert's family of SRI as the inaugural fund in its new SAGE (Sustainability Achieved Through Greater Engagement) series of funds.
In a release, John Jacobs
, UNIFI Companies chairman, president and CEO said: "Both Summit Mutual Funds' and Calvert Mutual Funds’ shareholders will benefit from the synergies of a combined investment capability that delivers consistent portfolio management and excellent client services."
The merger was in the plans for UNIFI since it as created by the merger of Ameritas Acacia Companies and Union Central Life Insurance Company in 2006, Calvert spokeswoman Elizabeth Le Vaca told The MFWire
. Calvert and Summit were brought together as a result of this merger.
"A a result of the merger Unifi had two mutual fund product lines," Le Vaca said. "It was always part of the plans to merge them."
The deal will bring a total of 15 mutual funds and insurance products with a combined $1.2 billion in assets to Calvert's stable.
Company Press Release
LINCOLN, Neb. & BETHESDA, Md. - (Business Wire) UNIFI Companies announced today it is consolidating the operations of its two affiliated mutual funds: Summit Mutual Funds and Calvert Group, Ltd. The move combines the unique, individual strengths of Summit Mutual Funds, Inc. and Calvert Group, Ltd. (Calvert), resulting in a single mutual fund operation that preserves the strong records of in-house portfolio management teams, benefits from an extensive distribution network and creates efficiencies in mutual fund operations—all benefiting the funds’ shareholders, clients, and the overall organization.
On September 9, the Board of Directors of Summit Mutual Funds, Inc. approved a plan whereby Calvert Asset Management Company, Inc. will assume management of the Summit Mutual Fund assets. As a result, Calvert will be the UNIFI Companies’ sponsor of mutual funds for the retail, institutional and insurance market places. This transaction, now subject to Summit Mutual Fund shareholders’ approval, is expected to be completed in early December 2008.
Commenting on the transaction, John Jacobs, UNIFI Companies chairman, president and CEO said, “Both Summit Mutual Funds’ and Calvert Mutual Funds’ shareholders will benefit from the synergies of a combined investment capability that delivers consistent portfolio management and excellent client services.”
Under the terms of the transaction, Calvert Asset Management Company, Inc. will purchase the mutual fund operations of Summit Investment Partners, Inc. and become the Advisor to the Summit Mutual Funds. These funds include the Apex series of retail funds and Pinnacle variable insurance portfolios. Summit Investment Partners' investment products and teams will be incorporated into the Calvert organization as follows:
Within the retail mutual funds:
* The Summit Everest Fund, managed by James McGlynn and the large cap value team, will merge with the Calvert Large Cap Value Fund that is currently in registration with the SEC. James McGlynn and his team will become part of Calvert’s investment advisor, bringing their recognized track record of value equity management and enhancing Calvert’s in-house equity management capabilities.
* Kevin Aug and Sam Cooper, assistant portfolio managers of Summit’s High Yield Bond Fund, will maintain the Fund’s investment track record and move over to Calvert, becoming part of Greg Habeeb’s taxable fixed income team. The Fund will be renamed the Calvert High Yield Bond Fund.
* Apex Series Bond and Money Market funds will merge into existing Calvert Funds. The Nasdaq-100 Index Fund will be liquidated.
Within Summit’s fourteen Pinnacle Series variable insurance portfolios:
* Calvert will become Advisor to the portfolios and retain Summit Investment Partners, Inc., as the sub-advisor for eleven portfolios. The EAFE International Index portfolio will continue to be sub-advised by World Asset Management and the Zenith and Bond portfolios will be managed by Calvert teams. This arrangement will allow the Summit teams to maintain their performance track record and portfolio management expertise while adding Calvert’s proven expertise in distribution and operations management.
“Our portfolio management and administrative teams will work with Calvert on this transition to ensure minimal disruption to our clients, shareholders and distribution partners,” commented Bill Lester, president and CEO of Summit Investment Advisors, Inc. “Most important will be the continuation of strong investment performance and in many cases, reduction in fees and expenses due to the economies of scale that will be achieved through a single mutual fund organization.” he added.
“We are excited about the addition of the large cap value and the high yield portfolio management teams to Calvert and the opportunity to offer those products to our investors.” said Barbara J. Krumsiek, president and CEO of Calvert.
Calvert, a leader in sustainable and responsible investing, will include one of Summit funds into its sustainable and responsible fund family. The Calvert Large Cap Value Fund, (formerly the Summit Everest Fund), will become the first in Calvert's new SAGETM ("Sustainability Achieved Through Greater Engagement") series of funds. Within the new SAGE series, the Fund will invest in a full range of companies that are consistent with its threshold responsibility standards. The companies in the investment portfolio may be emerging sustainability leaders and/or entities which have yet to make significant progress but have the potential to do so. (For more information on Calvert’s new SAGE strategy, go to www.calvert.com).
Calvert is an investment management firm with over $15 billion in assets under management. Calvert is a leader in sustainable and responsible investing and manages over $6 billion in sustainable and responsible asset management strategies for institutional and individual investors. The firm’s SRI funds have grown to 21, with the most recent additions being the Calvert Global Alternative Energy Fund (CGAEX) and the Calvert International Opportunities Fund (CIOAX). Over the years, the firm has built a core line-up of mutual funds ranging from equity to fixed income, large-cap to small-cap, and domestic to international. For more information, go to: www.calvert.com.
About Summit Investment Partners
Summit Investment Partners is comprised of three entities: Summit Investment Advisors, Inc.; Summit Investment Partners, Inc.; and Union Central Mortgage Funding. Summit Investment Advisors, Inc. and Summit Investment Partners, Inc. are registered investment advisors managing more than $11 billion in assets for insurance companies, public and private pension funds, endowments, foundations, mutual funds and high net worth individuals. Union Central Mortgage Funding originates, aggregates and sells commercial mortgages via securitization, servicing more than $450 million of assets. Summit Investment Partners is an affiliate of the UNIFI Companies, a mutual holding company. For more information, go to: www.sipllc.net.
UNIFI Companies—Ameritas Life, Acacia Life, Union Central Life and their affiliated companies—offer a wide range of insurance and financial products and services to individuals, families and businesses. These products and services include life insurance; annuities; individual disability income insurance; retirement plans; group dental, eye care and hearing care insurance; investments; mutual funds; banking and public finance. For more information, go to: www.UNIFIcompanies.com.
For more information on any Calvert fund, please contact your financial advisor or call Calvert at 800.368.2748 for a free prospectus. An investor should consider the investment objectives, risks, charges, and expenses of an investment carefully before investing. The prospectus contains this and other information. Read it carefully before you invest or send money.
Calvert mutual funds are underwritten and distributed by Calvert Distributors, Inc., member FINRA, subsidiary of Calvert Group, Ltd. (8272, 09/12/08)
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