Pioneer Investment Management will pick up the 23-fund portfolio from Southeast regional bank AmSouth Bancorp. The bank announced it was exiting the fund business in a press release on Monday.

Pioneer gains $5.5 billion in assets under management from the acquisition, boosting its currently 46-fund family with $42 billion in assets under management.

"It has become more difficult and expensive for small mutual fund families to compete effectively," said Dowd Ritter, chairman, president and chief executive officer of AmSouth.

Although the purchase price was not given, AmSouth said it expected to record $50 million of pre-tax earnings when the transaction closes in the third quarter.

Pioneer plans to reorganize the AmSouth funds into Pioneer funds with similar objectives, pending shareholder approval.  

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