The funds of Montgomery Asset Management are trading one bank parent for the other. Wells Fargo has agreed to purchase the bulk of Montgomery's business from Germany's Commerzbank. The two banks did not disclose the price tag of the sale and other terms. When completed. the deal will move $4.9 billion of the $5.7 billion of Montgomery Assets to Wells Fargo.

That pickup should be a significant boost to Wells Fargo Funds Management. The bank fund family is the 25th largest with more than $68 billion in mutual fund assets and $14 billion in collective fund assets under management at the end of September.

The firms did not disclose how the acquisition would effect Montgomery's staffing in its funds group.

The acquisition will complete in stages beginning in the fourth quarter, according to Wells Fargo. In addition, the Board of Trustees and shareholders of The Montgomery Funds and Wells Fargo Funds' Board of Trustees still need to approve the transaction. The banks expect the transition, including the approval, to be completed four to six months after the acquisition.

"This acquisition will further strengthen our investment management capabilities and products for our investing customers," said Mike Niedermeyer, executive vice president of Wells Fargo's Institutional Investments Group, in a statement. "Our 150 years of strength, stability and investment experience combined with Montgomery's proven success in investment specialties will greatly benefit both our investing customers."

"We're pleased that our key investment teams will be joining an organization that shares our firm's entrepreneurial approach to asset management and commitment to institutional and mutual fund investors," said Scott Tuck, Montgomery's chief executive officer. "Wells Fargo is a diversified and highly successful financial services company that will provide significant resources and support for the Montgomery fixed income, small cap equity and emerging markets investment teams."  

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