6th Oct 2005 07:20
Old Mutual PLC06 October 2005 OLD MUTUAL PLC ISIN CODE: GB0007389926 JSE SHARE CODE: OML NSX SHARE CODE: OLM ISSUER CODE: OLOML ForstmannLeff to Join Old Mutual Asset Management Boston, MA, October 5, 2005 -- Old Mutual Asset Management, the U.S. assetmanagement group of Old Mutual plc (LSE: OML), and ForstmannLeff, a NewYork-based investment management firm specializing in small-, mid- andlarge-capitalization domestic equity investment strategies, today announced anagreement under which ForstmannLeff will join the Old Mutual Asset Managementgroup of companies. Under the terms of the agreement, Old Mutual will acquire the majority interestin ForstmannLeff currently held by Refco Group Holdings, while ForstmannLeffemployees will increase their ownership stake in the firm to 40%. Following theclosing of the acquisition on or about October 31, certain investmentprofessionals of Old Mutual affiliate Liberty Ridge Capital will joinForstmannLeff. Financial terms of the agreement were not disclosed. "ForstmannLeff's high-quality growth and core domestic equity strategies greatlystrengthen our position in these areas of the market," said Scott Powers, chiefexecutive of Old Mutual Asset Management. "The success ForstmannLeff hasachieved has been driven by the experience, depth and stability of itsinvestment teams, the superior operating platform put in place by the firm'sleadership, and an ownership structure which aligns employee interests withthose of the firm's clients. These key elements, combined with the rigorousfundamental research for which ForstmannLeff is known, make the firm anoutstanding addition to our group." ForstmannLeff is led by Richard Goldman, president and chief executive officer;Thomas Galvin and William Potter, co-chief investment officers of the Large, Mid& All Cap Growth team; Beth Dater, chief investment officer of the Small & SMidCap Growth team; Nancy Tooke, CFA, chief investment officer of the Small & MidCap Core team; and Mark Bergen, chief operating officer and chief financialofficer. The firm's 23 investment professionals managed a total of $4.7 billionon behalf of clients as of June 30, 2005. Following the closing of theacquisition, professionals joining ForstmannLeff from Liberty Ridge Capital willestablish new ForstmannLeff investment teams based in Wayne, Pennsylvania.Jerome Heppelmann will lead the Large & All Cap Core team, and Sam Baker willlead a Specialty Small Cap team. Like all member firms of Old Mutual Asset Management, ForstmannLeff willmaintain its operating independence and investment autonomy after joining OldMutual, while having access to operational support from Old Mutual innon-investment areas, such as product development, marketing and distribution;technology, human resources, and financial management; and legal, compliance andrisk management. "Our strategic partnership with Old Mutual will allow us to maintain ourunwavering commitment to delivering the highest quality investment products toour clients," said Mr. Goldman. "This commitment places the highest priority onrigorous fundamental research and investment discipline, while providing ahighly desirable environment for our exceptional investment talent. We aresolidifying an environment that supports and energizes our teams to deliver andexceed the results our clients expect." PBHG Funds and PBHG Insurance Series Fund Separately, the Board of Trustees of PBHG Funds and PBHG Insurance Series Fundnotified shareholders of plans to seek shareholder approval to appoint OldMutual affiliate Old Mutual Capital to replace Liberty Ridge Capital asinvestment advisor to each of the Trusts and, at the same time, to appointForstmannLeff as sub-advisor to the 11 PBHG Funds and eight PBHG InsuranceSeries Fund portfolios currently managed by Liberty Ridge Capital. Prospectussupplements for the Trusts outline the Board's approval of interim investmentadvisory and sub-advisory appointments to be effective with the closing of theForstmannLeff acquisition on or about October 31, 2005, and plans to rename PBHGFunds to Old Mutual Advisor Funds II and PBHG Insurance Series Fund to OldMutual Insurance Series Fund. In addition, the prospectus supplements indicatethat new fee arrangements will reduce the advisory and administrative servicesfees paid by most of the Funds, as well as the expense caps on most of theFunds. Shareholder approval of the new investment advisory and sub-advisoryappointments will be sought at a special meeting planned for December. "The Trustees for PBHG Funds and PBHG Insurance Series Fund have indicated theywill propose to fund shareholders that the funds follow a model that separatesthe day-to-day responsibilities for the group's overall investment supervisory,compliance and administrative functions from the portfolio management functionsto be executed by the sub-advisor for each fund," said David Bullock, chiefexecutive officer of Old Mutual Capital. "Such a structure allows thesub-advisor for each fund to focus exclusively on investment management, whileOld Mutual Capital focuses on oversight responsibilities for each fund andprovides all other administrative and shareholder-service functions for the fundfamily. An additional benefit for shareholders will be expense reductions formost of the funds, which will be detailed in a communication to shareholdersplanned for November." Old Mutual Advisor Funds Denver-based Old Mutual Capital has served as investment advisor to the OldMutual Advisor Funds, a fund family featuring investment management by OldMutual's U.S. member firms, since the new group was introduced last year. TheBoard of Trustees for the Old Mutual Advisor Funds notified shareholders of theBoard's approval of the interim appointment of ForstmannLeff to replace LibertyRidge Capital among sub-advisors providing investment management services to thegroup, to be effective with the closing of the ForstmannLeff acquisition.Subject to the final approval of fund shareholders at a special meeting plannedfor December, ForstmannLeff would join 10 other Old Mutual member firms managingportions of the group's four asset allocation funds, which were introduced inSeptember 2004. About ForstmannLeff ForstmannLeff, founded in 1968 and based in New York City, manages growth andcore domestic equity portfolios for a broad client base including Fortune 100corporate pension and profit sharing plans, public pension funds, major U.S.endowments and foundations, Taft-Hartley funds, jointly-trusteed employeebenefit accounts, and high net worth individuals and families. The firm'sinvestment approach is characterized by intensive fundamental research, adisciplined investment process, rigorous risk controls, and distinct investmentteams organized with specific specializations by asset class and capitalizationrange. The firm's 23 investment professionals managed a total of $4.7 billion onbehalf of clients as of June 30, 2005. More information on ForstmannLeff isavailable at www.forstmannleff.com. About Old Mutual Asset Management and Old Mutual Capital The member firms of Old Mutual Asset Management provide high-quality, activelymanaged investment products in all major asset classes and investment styles,with each firm focusing on its own specialized area of expertise. The group'smember firms managed in aggregate $209 billion as of June 30, 2005. Denver-basedOld Mutual Capital was established in 2004 to serve as the group's full-servicemutual fund and managed account complex. The group's parent is Old Mutual plc,an international financial services company based in London, with operations inasset management, life assurance, banking and general insurance. Moreinformation on the group's member firms, and their investment teams andstrategies, is available at www.oldmutualus.com. The PBHG Funds, the PBHG Insurance Series Fund, and the Old Mutual Advisor Fundsare distributed by Old Mutual Investment Partners (OMIP) and are available onlyby prospectus. To obtain a prospectus, which includes more complete informationabout the funds, including investment objectives, risks, charges and expenses,please contact your financial advisor or OMIP at (800) 433-0051. The prospectusshould be read carefully before investing. Media contact: Tucker Hewes, Hewes Communications, Inc., (212) 207-9451, [email protected] This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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