MutualFundWire.com: Two Asset Managers are Set to Become One

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Friday, September 4, 2009

Two Asset Managers are Set to Become One

Nine months after its parent was purchased by PNC Financial, Allegiant Asset Management will merge with PNC Capital Advisors Inc. to form a new entity called PNC Capital Advisors LLC. John Abunassar, president of Allegiant, is leaving the company, PNC spokesman Alan Aldinger told The MFWire.

John Abunassar

The merger is set to occur on or about September 29.

Kevin McCreadie, PNC Capital's CEO since 2004, will retain his post in the combined organization, which will have a total of $37 billion of AUM.

The fate of other high-level Allegiant executives is not immediately clear. It's "still being determined" what roles they will play in the combined entity, Aldinger said.

Company Press Release

PITTSBURGH – The PNC Financial Services Group, Inc. (NYSE: PNC) has announced its intention to merge Allegiant Asset Management Company with its affiliate, PNC Capital Advisors, Inc. on or about Sept. 29, 2009 to form PNC Capital Advisors, LLC.

Allegiant was a division of National City Corporation, which was acquired by PNC on Dec. 31, 2008.

The new registered investment advisor will have a combined $37 billion in assets under management and offer a wide array of financial products, including large-cap, mid-cap, small-cap and international equities, taxable and municipal fixed income with broad distribution channels through banks, direct institutional and third party broker-dealers.

Kevin McCreadie, who has been chief executive officer of PNC Capital Advisors, Inc. since 2004, will retain his position in the new organization.

Allegiant currently manages the Allegiant Funds and the Allegiant Advantage Fund. On Sept. 30, PNC Capital Advisors, LLC will begin acting as investment advisor and co-administrator to both.

The PNC Financial Services Group, Inc. (www.pnc.com) is one of the nation’s largest diversified financial services organizations providing retail and business banking; residential mortgage banking; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management; asset management and global fund services.