CCM Advisors acquires AHA Mutual Funds.

Business Editors, Health/Medical Writers

CHICAGO--(BW HealthWire)--March 21, 2001

CCM Advisors, LLC, a majority-owned affiliate of Convergent Capital Management Inc. (CCM), the Chicago-based money management holding company, today announced the acquisition of AHA Investment Funds. CCM Advisors, a newly created CCM affiliate, purchased the investment management contract from Hewitt Associates, LLC, the Lincolnshire, IL-based benefits consultants.

AHA Investment Funds includes four funds with more than $200 million in assets. Its investors are member institutions of the American Hospital Association (AHA), the largest national association of hospitals and health systems with more than 4,800 institutional members.

grow the funds

"Our relationship with AHA is crucial to CCM Advisors. That relationship - along with the funds themselves and their long track record - will serve as a platform to enhance the scope and reach of these funds as well as the investment program that contains them. Our immediate task is to grow the funds through greater penetration of the AHA membership and the entire spectrum of the healthcare industry," said Douglas D. Peabody, who serves as managing director - marketing and distribution for both CCM and CCM Advisors. Anthony J. Burke, president and CEO of the AHA-Financial Solutions, Inc.; an AHA subsidiary, agrees: "We believe AHA members will benefit from this new relationship because CCM Advisors will continue the AHA Investment Funds' tradition of solid investment management while broadening the scope of these funds. That means broader investment choices for our members."

"What attracted us to this fund complex is the partnership with the AHA and the quality of the AHA funds. Their 12-year performance record has earned them Morningstar ratings of 4 and 5 stars," noted Peabody. "We believe that a rededicated effort built around an infusion of personnel and capital resources will result in a significant increase in awareness and assets. That's why CCM Advisors brought Timothy Solberg over from Hewitt. Tim has been extensively involved with the AHA Funds for more than 10 years. He is now an owner and managing director of CCM Advisors."

For CCM, this acquisition provides the foundation for a broader mutual fund offering. CCM Advisors' plans include building a fund complex that begins with the AHA Investment Funds as the core. The next step is to expand by penetrating niche market segments and distribution channels by brand partnering with entities and institutions such as the AHA.

adding new funds

CCM Advisors' immediate plans include adding new funds (a money market and international equity fund, for example) to the current four: a full maturity fixed income fund, a short duration fixed income fund, a balanced portfolio and a diversified equity portfolio. The last is an S&P select fund.

To build strong, competitive fund offerings for current and future investors, the CCM Advisors approach - serving as a manager of managers - will seek out what it believes are the most appropriate investment managers to meet the specific needs of CCM Advisors' clients and its distribution partners. And for CCM Advisors and CCM, the acquisition of AHA Funds means a solid foundation for building a successful mutual fund platform that provides other CCM affiliates a potential mutual fund offering and distribution support.

With the formation of CCM Advisors and the management contract acquisition of AHA Investment Funds, CCM now has 13 affiliates with more than more than $13 billion in assets under management. These affiliates focus on three lines of business:

-- Investment Counselors, which offer high net worth individuals, families and
their endowments customized portfolio management and intensive client servicing
delivered through a trusted advisor.

-- Asset Managers, which provide specialized investment capabilities that are
packaged and delivered to multiple markets.

-- Distribution Platforms, which fuel the growth of CCM affiliates by providing
access to new markets and services.

CCM's current affiliates:

Ambs Investment Counsel, LLC, Grand Rapids, MI.
Bufka & Rodgers, L.L.C., Schaumburg, IL.
Cadinha & Co. LLC, Honolulu, HI.
CCM Advisors, LLC, Chicago, IL.
Clifford Associates, LLC, Pasadena, CA.
Matthews International Capital Management, LLC, San Francisco, CA.
Mid-Continent Capital, LLC, Chicago, IL.
Patterson & Associates, Austin, TX.
Philip V. Swan Associates, LLC, Pasadena, CA.
Sage Advisory Services, Ltd. Co., Austin, TX.
Security Trust Company, Phoenix, AZ.
Spare, Kaplan, Bischel & Associates, LLC, San Francisco, CA.
Star Series Advisors (Bermuda) Ltd., Bermuda.

About AHA

The American Hospital Association is a not-for-profit association of health care provider organizations and individuals that are committed to health improvement of their communities. The AHA is the national advocate for its members, which includes more than 4,800 hospitals, health care systems, networks, and other providers of care, and 37,000 individuals. Founded in 1898, the AHA provides education for health care leaders and is a source of information on health care issues and trends. For more information, visit the AHA Web site at www.aha.org.

About AHA Financial Solutions, Inc.

AHA Financial Solutions, Inc. (AHA-FSI) is the insurance- and financial-product marketing subsidiary of the American Hospital Association. It functions as a resource agency to AHA-member hospitals and other health care organizations. AHA Financial Solutions evaluates the marketplace and collaborates with companies to create strategic financial and insurance products and services for health care professionals. AHA Financial Solutions has an exclusive sponsorship from the Health Care Financial Management Association (HFMA), a professional association that includes more than 30,000 health care financial executives. For more information, visit the Web site at www.aha.org/resources/aboutiri.html.