SAN FRANCISCO -- Charles Schwab will acquire U.S. Trust Corp., New York, in a deal that observers say brings Schwab full circle, from discount brokerage to providing full wealth management services to high-net worth individuals and families.
The deal is valued at $2.7 billion and gives U.S. Trust shareholders 3,427 shares of Schwab stock for each share of U.S. Trust stock, which are valued at $129 per share. U.S. Trust managed $86 billion, mainly for wealthy individuals as of Dec. 31.
The companies will retain their separate brand identities, but the deal will allow Schwab to access U.S. Trust's "high touch" services for wealthy individuals, such as trust, financial and estate planning, and private banking services, David Pottruck, Schwab president and chief executive, said in a statement.
AMG establishes new no-load family
BOSTON -- Affiliated Managers Group launched the Managers AMG Funds, a new family of no-load mutual funds.
Through affiliate The Managers Funds, AMG is providing a mutual fund platform of administrative and distribution services that will help its 15 investment subsidiaries enter the mutual fund market.
The first fund in the family is the Essex Aggressive Growth Fund, managed by AMG affiliate Essex Investment Management. It is managed by Essex's founder, Chairman and Chief Investment Officer Stephen D. Coulter and Vice President R. Daniel Beckham. The fund has a $25,000 minimum.
The number of funds in the family will be determined by AMG affiliates, rather than by corporate headquarters, said Lee Chertavian, an AMG senior vice president.
Northern Trust brings offerings up to 20
CHICAGO -- Northern Trust expanded its family of institutional mutual funds to 20 with the addition of the Northern Institutional Mid Cap Growth Portfolio, which is managed by Ken Turek, vice president and portfolio manager. Mr. Turek will continue to manage the $1 billion-plus Northern Collective Mid Cap Growth Equity Fund.
The new fund will hold at least 65%of assets in stocks with capitalizations within the range of the S&P 400 stock index, selected through a combination of fundamental research and quantitative techniques.
Viederman to head research at Citizen Advisers
PORTSMOUTH, N.H. -- Daniel A. Viederman was hired as director of social research and activism at Citizen Advisers. He will oversee the company's social and environmental initiatives, such as investment screens, shareholder activism and corporate citizenship programs.
Results of Citizens Advisers' research is used in the management of three socially responsible mutual funds: the Citizens Emerging Growth Fund; the Citizens Global Equity Fund; and the Citizens Index Fund.
Mr. Viederman was chief executive officer of the China program of the World Wildlife Fund.
Also, Citizens Funds added the Citizens Small Cap Index Fund to its family of socially and environmentally responsible mutual funds. The fund will invest in companies in the Citizens Small Cap index, a proprietary, market-weighted index of approximately 300 small companies that meet Citizens Advisers' socially responsible criteria.
The fund opened Dec. 28 and is available for investment to defined contribution plan investors.
Nvest sets up unit for mutual fund wraps
BOSTON -- Nvest created a new unit, Nvest Managed Account Services, to market Nvest affiliates' investment products to mutual fund wrap programs.
Hugh M. Kelly was promoted to senior vice president and will head the new unit. Mr. Kelly was vice president and national sales director and oversaw Nvest's marketing efforts to financial intermediaries.
And effective Feb. 1, New England Funds will become known as Nvest Funds. The new name reflects the affiliation with Nvest, which owns a number of money managers, many of which are subadvisers to the family of 25 mutual funds, a spokesman said.
RS Investment opens Internet Age Fund
SAN FRANCISCO -- RS Investment Management opened the RS Internet Age Fund, managed by Jim Callinan and Cathy Becker. The fund will invest in companies expected to profit substantially from the growth of the Internet, particularly in the computer software and hardware, telecommunication equipment and service, e-commerce and multimedia product and service sectors.
Quill joins Financial Research
BOSTON -- Gavin F. Quill joined mutual fund industry trackers Financial Research Corp. as senior vice president of the research study division.
Mr. Quill left Scudder Kemper after 13 years as vice president of global cross-business development to briefly run his own consulting firm, Quill Consulting, which has now closed.
Mr. Quill will help expand FRC's efforts to make its mutual fund industry research comprehensive.
