News Release
January 24, 2006
For further information, please call:
Columbia Management
Tom Gariepy -- (617) 434-7386
Deutsche Bank
Rohini Pragasam -- (212) 250-4516
Press and Media Relations
NEW YORK- Columbia Management, the primary asset management arm of Bank of America, and Deutsche Asset Management (DeAM), the global asset management business of Deutsche Bank, have announced an agreement for DeAM to serve as sub-investment advisor for the collateralized loan obligation vehicles for which Columbia and its affiliate, Flagship Capital Management, currently serve as collateral investment manager (the “CLOs”).
The subadvisory services will commence upon the completion of required notifications and receipt of all required approvals. Thereafter, DeAM will have primary investment management responsibilities for these transactions. The six CLOs represent approximately $2 billion of advisory assets as of 12/31/05. Completion of this transition is expected to occur within the first quarter 2006.
As part of this agreement, a team of investment professionals, currently responsible for the investment management services being provided to the CLOs, will be transitioned to DeAM, thus maintaining investment expertise, legacy management knowledge, and transaction-specific experience.
This sub-advisory arrangement is aligned with the strategic objectives and product focuses of both DeAM and Columbia. DeAM is enhancing its existing specialty fixed-income business with the addition of bank loan expertise to the suite of products it offers its clients around the world. "We intend to emphasize this capability and offer CLO management in the US and throughout Europe," said Bart Grenier, Global Head of Special Fixed Income at DeAM.
"We are enthusiastic about forming this subadvisory relationship with Deutsche Bank and the opportunity to work with this highly accomplished firm," said Brenda Furlong, head of fixed income for Columbia Management. "We look forward to continuing to deliver superior investment results to our clients."
As part of a broader effort to deliver best-in-class investments to clients and investors, Columbia is focusing on its core capabilities as the company further refines its product offerings. This transaction is consistent with Columbia 's rationalization of investment vehicles and products offered in the cash, taxable, and tax-exempt sectors.
About Deutsche Asset Management
Deutsche Asset Management is the global asset management business of Deutsche Bank AG, with AUM of US$666 billion (as of 9/30/05). It is one of the world's leading investment management organizations in terms of the quality and breadth of investment products, asset management expertise and client service. DeAM provides asset management capabilities to a variety of clients worldwide including foundations, non-profit organizations, public and private superannuation funds, high-net-worth individuals and retail investors.
About Columbia Management
Columbia Management is the primary investment management division of Bank of America Corporation. Columbia entities furnish investment management services and advise institutional and mutual fund portfolios. The company manages more than $361 billion in assets (as of December 31, 2005) managed assets consist of assets under the discretionary management of multiple registered investment advisors, including Columbia Management Advisors, LLC.