A news release said the transaction is expected to close in the fourth quarter of 2010 and to more than double Scout’s existing assets under management. The combined assets under management are expected to be more than $18 billion.
According to the announcement, Reams, based in Columbus, Indiana, manages more than $9.8 billion in fixed-income assets and serves a group of institutional clients, including Fortune 500 corporations, large public pension funds, Taft-Hartley plans, health care organizations, and a variety of universities, foundations, and endowments.
“Fixed-income represents a key strategic growth area in the institutional asset management business,” said Peter deSilva, president and chief operating officer, UMB Financial Corp., in the announcement. “The addition of Reams Asset Management and their expertise in the fixed-income sector complements Scout’s existing product offerings and allows us to offer clients a diversified array of top-tier investment options.”
The news release said Reams will operate as a division of Scout Investment Advisors and remain headquartered in Columbus. The firm’s leadership team will continue to manage the business in their current roles and the investment process and philosophy guiding the existing strategies will also remain unchanged.