Managers Investment Group
is adopting four Allianz funds in a deal that is anything but run of the mill. Managers is the proprietary fund arm of Affiliated Managers Group
and won the deal at the behest of the subadvisor to the funds, not Allianz.
Boston-based Cadence Capital Management
, the current subadvisor to the Allianz CCM funds, will remain in that role assuming that the adoption is approved by shareholders. All counted, Cadence managers nearly $6 billion in assets. The four funds in the adoption generated just more than $8.3 million in fees for Cadence in 2009.
The funds deal has already received approval from the Allianz board of directors and is awaiting a shareholder vote, according to a filing
The filing states that the adoption was sparked by a call agreement with the funds that was entered into in connection with the prior sale of Cadence. The agreement allowed Cadence the right to identify successor funds and excercising that right Cadence tapped Managers Investment Group LLC.
The filing did not provide further details of Cadence's sale or its timing and officials at all three funds have been unavailable to comment on the matter.
Cadence, which was initially backed by then-Pimco parent Pacific Mutual Life in 1999, was sold by Allianz to Rosemont Investment Partners in a 2005 management led buyout. Rosemont is a private equity firm specializing in the asset management space. It's Web site
continues to list Cadence as a portfolio company.
If shareholders approve the adoption, Managers expects to take control of the funds in the third quarter of 2010.
Through the adoption, Managers will acquire:
Allianz CCM Mid-Cap Fund
Allianz CCM Focused Growth Fund
Allianz CCM Emerging Companies Fund
Allianz CCM Capital Appreciation Fund
Portfolio management will stay the same after the switch. Cadence has five mutual funds on its own, the Large Cap Growth, Focused Growth, Mid Cap Growth, Small Cap Growth and Micro Cap Growth funds.
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