News Releases
CHICAGO and HARTFORD, CT, October 30, 2008 – The Phoenix Companies, Inc. (NYSE:PNX) today announced that it has entered into an agreement with Harris Bankcorp Inc., a U.S. subsidiary of Bank of Montreal (TSX, NYSE: BMO), under which Harris would acquire $45 million in convertible preferred stock, representing a 23 percent equity position in Virtus Investment Partners, Inc., Phoenix's wholly owned asset management subsidiary. The transaction, which is subject to certain regulatory and other conditions, is expected to be completed in connection with the spin-off of Virtus from Phoenix, which is expected to occur later this year.
Phoenix announced plans to spin off Virtus, previously named Phoenix Investment Partners, to its stockholders earlier this year and is currently finalizing the Form 10 registration statement required to complete the separation.
“We are very pleased that such a highly respected financial institution is making this investment in Virtus. It underscores Virtus' many strengths, including its management team, cash profitability, solid investment performance and broad distribution footprint,” said Dona D. Young, Phoenix's chairman, president and chief executive officer.
“Our relationship with Phoenix has been a great benefit to our clients, helping them meet their individual financial goals through well-managed investment vehicles,” said Ellen Costello, chief executive officer, Harris Bankcorp. “We are pleased to extend our connection further with this investment in Virtus and look forward to their continued growth and success.”
Virtus has had a business relationship with Harris since 2006 when Virtus became the investment adviser, distributor and administrator of the Harris Insight(R) Funds and retained Harris Investment Management Inc., a subsidiary of Harris Bankcorp, as sub-advisor to 15 of the Insight Funds and several Virtus Mutual Funds. Harris Investment Management is Virtus' largest subadviser and manages more than $5.8 billion in mutual fund assets for Virtus. In April 2008 the Virtus Insight Value Equity fund, which is subadvised by Harris Investment Management, was recognized by Lipper as the best fund in the Multi-Cap Value fund classification for the three-year period ending December 31, 2007.
“In Harris we see a stable investor with a clear interest in the continued growth and success of Virtus,” said George R. Aylward, president of Virtus. “This investment strengthens the strategic partnership between Virtus and Harris, which is a well-respected financial services company with a strong balance sheet. We look forward to deepening our relationship with Harris and growing Virtus Investment Partners for the benefit of all our shareholders,” Aylward said.
“Since the beginning of our affiliation in 2006, we have enjoyed a strong relationship with both the management and investment teams at Phoenix,” said Gilles Ouellette, president and chief executive officer, Private Client Group, Bank of Montreal. “Their reputation for excellence is a strong foundation for Virtus and we are happy to deepen our connection to them.”
Phoenix expects to complete the spin-off of Virtus in 2008. Investor meetings and other communications with the investment community are expected to take place after the Form 10 is declared effective. The information statement contained in the Form 10 will be available to all stockholders prior to the spin-off. Stockholders are urged to read the registration statement when it becomes available.
About The Phoenix Companies, Inc.
With roots dating to 1851, The Phoenix Companies, Inc. (NYSE:PNX) helps individuals and institutions solve their often highly complex personal financial and business planning needs through its broad array of life insurance, annuities and investments. In 2007, Phoenix had annual revenues of $2.6 billion and total assets of $30.2 billion. For more information, visit www.phoenixwm.com.
About Virtus Investment Partners, Inc.
Virtus Investment Partners provides investment management products and services to individuals
and institutions. It operates a multi-manager asset management business, comprising a number of individual affiliated managers, each with a distinct investment style, autonomous investment process and individual brand. Investors have an array of needs and Virtus Investment Partners offers a variety of investment styles and multiple disciplines to meet those needs. For more information, visit www.virtus.com.
About Harris
Harris is an integrated financial service organization providing more than 1 million personal, business and corporate clients with banking, lending, investing and wealth management solutions. The organization is a member of the BMO Financial Group (NYSE, TSX: BMO), which also provides corporate and investment banking services in the U.S. under the BMO Capital Markets name.
About Harris Investment Management, Inc.
Harris Investment Management, Inc. is a registered investment advisor with the SEC, and wholly owned subsidiary of Harris Bankcorp Inc., a wholly owned subsidiary of Harris Financial Corp., which is a wholly owned subsidiary of BMO Financial Group. Harris Investment Management, Inc. is a part of BMO Asset Management, which offers a range of investment management products and services to clients in North America, Europe, the UK and the Middle East through the following investment managers, which are also wholly owned by BMO Financial Group: Jones Heward Investment Counsel Inc., a Canadian institutional money manager; HIM Monegy, a high yield manager subsidiary and Pyrford International, a London UK based institutional asset manager. Harris Investment Management, Inc. became a wholly owned subsidiary of Harris Bankcorp, Inc. effective January 1, 1990. Prior to January 1, 1990, the firm was known as the Harris Investment Management Group, which operated as part of Harris Trust and Savings Bank. Please refer to Form Harris Investment Management, Inc.'s ADV, Part I for full disclosure of our ownership and complete list of affiliates.
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