John Hancock Advisors has adopted another fund for its burgeoning family. The Boston-based affiliate of the insurance company said it would take over the $52 million M.S.B. Fund from Shays Asset Management. Chicago-based Shays will continue to act as subadvisor to the fund which will take a new identity as the John Hancock Large Cap Select Fund.

The adoption occurred late last week. The transaction was put to shareholders in a special meeting last Wednesday. After they gave the deal the thumbs up, the adoption was completed and closed on Friday, August 22.

"We believe this new affiliation with John Hancock Advisers offers a tremendous opportunity for our current and future shareholders," said John McCabe, senior vice president and chief investment strategist for Shay Assets Management, Inc. "We will continue to invest with our consistent, disciplined approach, but now have the added benefit of the full-service marketing, distribution and servicing capabilities that distinguish John Hancock Funds."

Hancock has pursued a strategy of adopting niche funds with strong track records to grow its fund family rather than create new funds from scratch. It then repackages the funds for its distribution channel, leaving the investment management team behind the fund in place. Last November Hancock picked up the Pzena Focused Value Fund in a similar arrangement. In May of 2002 it took over the U.S. Global Leaders Growth Fund.

Those deals have both been successful from Hancock's perspective as the John Hancock U.S. Global Leaders Growth Fund has ballooned to $600 million in assets from $120 million last May. The John Hancock Classic Value Fund (formerly Pzena Focused Value) has also seen its asset base quintuple to more than $100 million from $20 million last fall.

"Once again, as part of our strategic plan to grow assets, we have been able to acquire a top performing mutual fund with an excellent portfolio management team that will complement our existing product line and greatly benefit our customers," said Maureen Ford, chairman and chief executive officer of John Hancock Funds.

"Over the past decade, portfolio managers John McCabe and Mark Trautman of Shay Assets Management have done an outstanding job managing this fund. They bring an excellent long-term track record and a proven, disciplined investment management approach has served the fund's shareholders well."  

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