Convergent Capital Management set up CCM Advisors to create, manage and market a new mutual fund platform. The new affiliate purchased the investment management contract for AHA Investment Funds from Hewitt Associates. Terms were not disclosed.
Hewitt was the investment consultant and selected subadvisers for the four institutional mutual funds, which have a total of $200 million in assets, under a contract with the American Hospital Association. The funds will continue to be offered to the AHAs membership of more than 5,000 health care institutions for use as investment vehicles for pension and defined contribution plans, operating, endowment, foundation and other institutional uses.
The funds will form the nucleus of a master-feeder mutual fund platform that CCM Advisors will market to other affiliate groups such as non-profits and religious organizations, said Jon C. Hunt, COO of Convergent Capital. The four AHA funds a short-term and a longer maturity fixed-income fund, and a balanced and a diversified equity fund use combinations of Patterson Capital, Western Asset Management, Freeman Associates, Baird Advisors and Cambiar Investors as subadvisers.
CCM Advisors Timothy Solberg, director of investment consulting, will search for subadvisers for an international equity and a money market fund that will be introduced later this year; no decisions have been made about the searches. Mr. Solberg headed Hewitts manager-of-managers program and moved to CCM Advisors with the AHA Funds when the sale was completed March 8.
Hewitt did not return calls by press time regarding the future of its manager-of-managers investment consulting program or Mr. Solbergs replacement.