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.
- 30 -
|
