Advent of Euro Prompts Premier U.S. and European Investment Advisors to Form Independent Joint Venture.

NEW YORK--(BUSINESS WIRE)--Oct. 13, 1998--

Metzler Bank of Germany and Payden & Rygel of the United States 

Create Separate Company to Offer New Cross-Border Opportunities

for Clients; Scott J. Weiner Named President of Metzler/Payden

Payden & Rygel, one of the largest U.S. independent investment counselors, and Metzler Bank, the oldest privately owned bank in Germany, Tuesday announced that they have created a joint venture to offer cross-border products and services to their clients, with a focus on Europe.

The new company, Metzler/Payden LLC, will not affect the ownership structure of the parent organizations. Anticipating a dramatic shift to European stock and bond markets in institutional asset allocations over the next five years, Metzler/Payden will offer multiple strategies for cross-border investment.

These will include tactical European products -- both equity and fixed income -- for U.S. clients and a full range of diversification options in U.S. stocks and bonds for European clients. The U.S. and Euro markets currently account for 65 percent of the world's developed bond markets and 70 percent of the world's stock markets.

"With the advent of the euro just around the corner and returns in Europe outpacing the rest of the world, the time is right to make it easier for our clients to find opportunities on both continents," said Joan Payden, chair of Metzler/Payden and chief executive officer of Payden & Rygel.

"At the same time, it is important to each of us to retain our independence in order to continue to provide our unique brand of personal service and individually tailored investment strategies for our clients," Payden added.

"This is a joint venture with a lot of synergy and chemistry based upon complementary skills," according to Norbert Enste, vice chair of Metzler/Payden and partner of Metzler Bank. He pointed out that Metzler/Payden brings together two topflight institutional investment managers with similar values, investment approaches and commitment to long-term client relationships.

"In addition, we are both advocates of a strong global strategy," Enste added.

"We look forward to opening doors for our clients on both sides of the Atlantic," said Scott J. Weiner PhD., who has been named president of Metzler/Payden. Weiner is a principal and director of global investments for Payden & Rygel.

"The euro will change the way that corporations borrow money in Europe, offering huge potential in the bond market as companies switch from bank borrowing to capital markets," Weiner predicted.

Spearheading the effort from the German side is Bernd Baur, executive vice president of Metzler/Payden, partner of Metzler Bank and chief investment officer of Metzler Asset Management in Frankfurt.

"The current pension structure in many of the EU countries is being reformed with private sector defined benefit and defined contribution retirement plans becoming a greater force in the market, adding to the impetus for global investment diversification," noted Baur.

Established under the 1940 U.S. Investment Management Act, Metzler/Payden will have headquarters in Los Angeles and will be staffed with professionals from both Payden & Rygel and Metzler Bank.

Based in Frankfurt since its founding in 1674, Metzler Bank is a respected name on the Continent and was one of the pioneering companies in the German fund business. It manages a number of large corporate German pension funds and has more than DM 11 billion under management for institutional clients and mutual funds, including European equity and balanced funds.

Metzler's expertise encompasses the full range of private banking services and it also has been a primary consultant to the German government on such issues as the privatization of Lufthansa Airlines.

Payden & Rygel, formed in Los Angeles in 1983, is one of the largest independent investment management firms in the United States as well as one of the largest global managers with more than $27 billion in assets under management for a blue chip list of corporate and institutional clients.