Aston Asset Management to be acquired yet again

Two mutual fund acquisitions were announced today, one involving a fund group with $6 billion in assets that has changed hands several times over the last few years.
FEB 10, 2010
Two mutual fund acquisitions were announced today, one involving a fund group with $6 billion in assets that has changed hands several times over the last few years. Affiliated Managers Group Inc. has entered into a definitive agreement to acquire a majority equity interest in Aston Asset Management LLC through the acquisition of Highbury Financial Inc., Aston's parent company. To finance the acquisition, 1,748,879 shares of AMG common stock are expected to be issued in exchange for all of the outstanding equity of Highbury. Following the completion of the transaction, expected to close in the second quarter of 2010, Highbury's holding company operations will cease and all holding company costs will be eliminated. The companies did not offer an estimate of the transaction's value. The total would be around $113.6 million, based on Friday's $64.93 closing price for Affiliated Managers shares and the number of AMG shares to be issued at the time the deal closes. After the deal's closing, employees and management at Aston, as well as subadvisers who manage the company's funds, will remain, Affiliated Managers said. Chicago-based Aston is the principal adviser to the Aston Funds, a group of 24 subadvised, no-load mutual funds with assets of about $6 billion as of Sept. 30. The firm distributes its domestic equity, international, alternatives, sector, balanced and fixed-income funds to consultants, registered investment advisers, broker-dealers and workplace savings plans like 401(k)s. Highbury bought Aston in 2006, then called ABN Amro Asset Management, from Dutch-based banking giant ABN Amro NV for $38.6 million. ABN Amro brought the group in 2000, then called the Alleghany Asset Management, from Alleghany Corp. Despite having changed hands and names so many times, Aston's approach to investing has never changed, said Kenneth Anderson, president of Aston. Aston selects managers that follow “disciplined institutional principles” to manage its 24 funds, he said. This time its investment process and its name are expected to remain intact, Mr. Anderson said. In a separate acquisition also announced today, FBR Asset Management Holdings Inc., a subsidiary of FBR Capital Markets Corp., will acquire the mutual fund operations of AFBA 5Star Investment Management Co., a for-profit affiliate of the non-profit Armed Forces Benefit Association. The AFBA 5Star funds — a group of 6 funds with total assets of about $200 million — will be renamed and merged into the FBR Funds. “Even though out products have always performed well, we felt it was time to team up with someone that could provide us a little more scale,” said Robert E. Morrison, Jr., president and chief investment officer of AFBA 5Star Investment Management. The acquisition is expected to close in the first quarter of 2010. (The Associated Press contributed to this article.)

Latest News

Maryland bars advisor over charging excessive fees to clients
Maryland bars advisor over charging excessive fees to clients

Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.

Wave of SEC appointments signals regulatory shift with implications for financial advisors
Wave of SEC appointments signals regulatory shift with implications for financial advisors

Reshuffle provides strong indication of where the regulator's priorities now lie.

US insurers want to take a larger slice of the retirement market through the RIA channel
US insurers want to take a larger slice of the retirement market through the RIA channel

Goldman Sachs Asset Management report reveals sharpened focus on annuities.

Why DA Davidson's wealth vice chairman still follows his dad's investment advice
Why DA Davidson's wealth vice chairman still follows his dad's investment advice

Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.

401(k) participants seek advice, but few turn to financial advisors
401(k) participants seek advice, but few turn to financial advisors

Cerulli research finds nearly two-thirds of active retirement plan participants are unadvised, opening a potential engagement opportunity.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today’s choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave