PFM has agreed to take over the assets of Fiduciary Capital Management (FCM), a US-based asset manager, for an undisclosed sum.
FCM, owned by Ohio National Financial Services, offers low-risk stable value investment management services as well as other related services such as insurance company credit evaluation, annuity purchases and advisory services incorporating stable value.
The deal will add around $2.5bn in assets to PFM’s asset management arm. PFM said that the acquisition will help its asset management business expand by including stable value investments to retirement plans including 401(k) and 457 plans.
The combined entity will be led by David Starr, the managing director and head of stable value group at PFM. A total of six FCM employees will join PFM as part of the deal.
PFM CEO John Bonow said: “The FCM team provides a great complement to our current array of asset management services. This planned acquisition adds a unique asset class to our very substantial fixed income business and gives us the opportunity to manage assets in the defined contribution market. PFM and FCM share a conservative, income-oriented investment philosophy that strives for principal preservation.”