Affiliated Managers to Buy Fremont Funds

July 14, 2004 — Affiliated Managers Grp (AMG) said on Wednesday that it has agreed to acquire 13 mutual funds with about $3 billion in assets from Fremont Investment Advisors Inc. Terms were not disclosed.

The funds to be acquired include the Fremont Mutual Fds:Bond Fund (FBDFX), which is run by well-known bond fund manager Bill Gross of Pacific Investment Management Co.

Affiliated is acquiring the funds through its Managers Funds unit, which is the investment adviser for 27 mutual funds with about $5 billion in assets. The affiliate said the Fremont funds will complement its offerings.

Affiliated said it expects “a significant number” of Fremont employees to join the Managers Funds, and that “the vast majority” of Fremont’s investment professionals, including its outside fund managers, are expected to keep their jobs. Affiliated also said it will open an office in San Francisco, where Fremont is based, in connection with the transaction.

Affiliated is buying the Fremont funds while the Securities and Exchange Commission is investigating alleged late trading in the funds. The transaction is subject to “satisfactory settlement” of the “regulatory inquiries,” Affiliated said.