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Friday, May 17, 2002|
First American Finalizes Mergers
First American Funds has finalized the merging of a number of its funds. The actions follow shareholder approval on Tuesday (May 14, 200) and a director's vote on Feb. 21. The action was taken to reduce expenses at the fund group after its merger with US Bancorp.
The fund mergers are intended to qualify as tax-free reorganizations, with merger expenses borne by U.S. Bancorp Asset Management. The mergers leave 51 First American funds, with more than $54 billion in assets under management as of March 31.
"By focusing our resources on fewer products, we can increase the potential opportunity for better investment performance and lower operating expenses over time," explained Mark Jordahl, chief investment officer of U.S. Bancorp Asset Management, Inc., the funds' registered investment advisor.
Jordahl added that the increased asset sizes of the surviving funds could increase their potential for achieving greater portfolio diversification and may allow them to engage in block trading and other investment transactions on potentially more advantageous terms.
The merged funds are:
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