The Knights of Columbus just bought a piece of a mutual fund firm. Yet the deal focuses on institutional asset management, not the funds.

Today Boston Advisors [profile] revealed that the New Haven, Connecticut-based Catholic society and insurance company took a 19.9-percent stake in Boston Advisors. The RIA also launched two new small cap strategies as separate accounts.

"They are managing some investments, some strategies, for us," Andrew Walther, a spokesman for the Knights, told MFWire.com. "It's sort of a strategic partnership."

Walther said that the Knights will have no connection with Boston Advisors' mutual fund business. He added that the deal closed in Q3 2011 and that the Knights negotiated the deal directly, without the use of an investment bank or deal consultant.

Boston Advisors launched its first mutual fund, the Broad Allocation Strategy Fund (BABAX), a year ago [see MFWire.com, 2/1/2011]. The fund now has $25.6 million in assets, and Boston Advisors has $2.0 billion in total assets under management.

As part of the deal, Boston Advisors will manage a global tactical asset allocation strategy and a socially responsible portfolio for the insurance company and its charity, general account and pension fund. The insurance company boasts "more than $80 billion of insurance in force and a full-time field force of more than 1,400."

Tony Minopoli, senior vice president and chief investment officer of the Knights, praised "Boston Advisors' range of equity investment capabilities and tactical allocation strategies."

"As we looked for an equity partner, we knew the type of investor we had in mind and the Knights ticked every box," stated Michael Vogelzang, president and chief investment officer of Boston Advisors, adding that the two firms have "similar cultures."

Boston Advisors also just launched a small cap value strategy and a small cap growth strategy, both in separate account form. The RIA already boasts asset allocation, broad allocation, dividend tilt, international ADR equity, large core, large growth, large value, small cap core and tax sensitive core strategies.

Founded in 1982 as Boston Security Counselors, Boston Advisors sold to the Advest Group two years later. After Axa bought Advest's parent, the Mony Group, and then sold Advest to Merrill Lynch, management bought Boston Advisors back in 2006.

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Company Press Release

Boston, January, 20 2012 - Boston Advisors LLC, an institutional and private client investment management company, today announced that the Knights of Columbus Inc. has purchased a 19.9% equity stake in the firm. In addition, the insur- ance company has hired Boston Advisors to manage an All Cap Equity discipline, a global tactical asset allocation (GTAA) strategy, and a socially responsible portfolio for its pension fund, charity and general account.

“We are tremendously excited about our investment”, said Tony Minopoli, Senior Vice President and Chief Investment Officer of the Knights of Columbus. “Boston Advisors’ range of equity investment capabilities and tactical allocation strategies augment our fixed income expertise, and offer an excellent means of gaining exposure to the U.S. equity market and alternative asset classes.”

“As we looked for an equity partner, we knew the type of investor we had in mind and the Knights ticked every box”, explained Michael J. Vogelzang, CFA, President and Chief Investment Officer of Boston Advisors LLC. “During our discussions, it became clear that we shared similar cultures and that both of us brought a unique set of assets to the relationship that strengthened the groups. We are thrilled to work with the Knights of Columbus and have them as a major shareholder in the firm.”

The launch of two Small Cap Disciplines
Boston Advisors LLC announces the launch of two small cap equity disciplines to complement its small cap core capability, which has a track record of over ten years. Small Cap Value and Small Cap Growth offer distinct exposure to the small cap universe. Managed with the same investment process as Small Cap Core, the disciplines combine the rigor of proprietary quantitative analysis and the qualitative judgment of an experienced management team. The strategies are available as separately managed accounts.

Three-year track record for Broad Allocation Strategy
Three years ago, Boston Advisors launched a global tactical allocation strategy, Broad Allocation Strategy, as a separately managed account. The product was a direct response to investor demand for a strategy that offered appreciation potential as well as a means to limit downside risk. The Strategy’s adaptive versatility allows it to adopt a flexible and opportunistic approach to asset allocation, with the potential to deliver attractive risk-adjusted returns in different market environments. The product was launched as a mutual fund in 2011. Michael J. Vogelzang, CFA explained, “Broad Allocation Strategy has been received very favorably by investors, who recognize that it can play a number of roles in their overall portfolio. We believe it is an ideal means for investors to achieve their investment goals, regardless of the market environment.”

About Boston Advisors LLC
Boston Advisors, LLC is an independent, privately held, majority employee-owned firm. It is a SEC registered adviser with $2.0 billion in assets under management. The firm provides extensive investment capabilities in equity and balanced management. The firm was originally founded as Boston Security Counselors in 1982 and became known as Boston Advisors, Inc. after it was purchased by The Advest Group in 1984. In 2004, AXA Financial purchased The Mony Group, parent of The Advest Group and soon thereafter, sold The Advest Group and Boston Advisors, Inc. to Merrill Lynch (now Bank of America). As a result of a management lead buyout, Boston Advisors, Inc. was reorganized as Boston Advisors, LLC, and on April 1, 2006 became a privately held, majority employee-owned firm. 

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