In its announcement, ABN AMRO said it will sell the mutual fund business, involving 19 mutual funds with $6 billion under management, for $38.6 million. ABN AMRO will continue to provide advisory services to the funds.
The firm said the transaction will allow ABN AMRO Asset Management to intensify its efforts on the institutional market, which represents over $35 billion of core business in the United States. Interim CEO and President Nancy Holland of ABN AMRO Asset Management Inc. in the US, said in the announcement, “We are forming a strategic alliance with Highbury Financial Inc. that offers additional opportunities for distribution of our investment capabilities in the institutional market.”
If approved by all parties, under the transaction, Highbury Financial’s investment advisor Aston Asset Management LLC will become the advisor of nineteen mutual funds. The funds will be re-branded The Aston Funds, according to a Highbury press release.
The transaction is expected to close in the second half of 2006.