JOHN HANCOCK UNIT ACQUIRES PATRIOT; SIGNS PACT WITH NM CAPITAL MANAGEMENT, INC.
JOHN HANCOCK UNIT ACQUIRES PATRIOT; SIGNS PACT WITH NM CAPITAL MANAGEMENT, INC. BOSTON, May 7 /PRNewswire/ -- In moves aimed at providing a full array of money management services, The Berkeley Financial Group, the newly formed holding company that includes the John Hancock Family of Mutual Funds, announced today that it has completed the acquisition of The Patriot Group, Inc., and has agreed to acquire NM Capital Management, Inc. The announcement was made by Edward J. Boudreau, Jr., chairman and chief executive officer of The Berkeley Financial Group. In the Patriot acquisition, John Hancock Advisers, Inc., the investment manager for the John Hancock fund family, acquired all the outstanding shares of Boston-based Patriot group, the parent of Patriot Advisers. Under the agreement, John Hancock Advisers now takes over the management of the three Patriot closed-end funds. Under the terms of the agreement with NM Capital Management, a private account money manager based in Albuquerque, N.M., The Berkeley Financial Group will buy all the outstanding common stock in NM Capital. The three principals of NM Capital will exchange a portion of their common stock for an equity interest in the new entity and will continue their management of the firm. The closing date of the agreement is tentatively set for late June, pending the consent of NM Capital Management's clients. "The acquisition of Patriot and completion of the agreement with NM capital will position us as a full-service supplier of money management products to the brokerage community through the operating entities under our new holding company, The Berkeley Financial Group," said Boudreau. "Open-end mutual funds, closed-end funds and private account management are the three basic components of broker-distributed money management," he continued. "They are the three areas of money management that brokers are concerned with. Patriot, NM Capital and our family of John Hancock mutual funds enable us to serve a broad array of needs, of both brokers and their clients." Through John Hancock Advisers, The Berkeley Financial Group manages approximately $4.5 billion in equity fixed-income and balanced portfolios. It is owned by John Hancock Mutual Life Insurance Company. The three Patriot closed-end funds, all traded on the New York Stock Exchange, are Patriot Premium Dividend Fund I (symbol: PDF), Patriot Premium Dividend Fund II (symbol: PDT) and Patriot Select Dividend Trust (symbol: DIV). The three funds have combined assets of approximately $700 million, The funds will now be managed by Andrew F. St. Pierre. However, Boudreau stressed that the change in oversight and management will not result in changes in the investment policies and practices of the funds. With about $350 million under management, NM capital now serves hundreds of clients primarily located in the Sunbelt states. It offers investment services to numerous "wrap" account programs, so-called because they wrap together several services and cover them with a single fee. Offered by broker/dealers, such programs assist clients in choosing and monitoring investment management firms that best fit the client's investment philosophy and objectives. Founded in 1977, NM Capital's investment philosophy is strongly oriented to capital preservation with an underlying style that incorporates a fundamental value approach. "The agreement will provide NM Capital with additional global research capabilities as well as significant technical, administrative and financial resources," said Gerald S. Epstein, president of NM Capital. "It is important to note that NM Capital will continue to provide personalized service to our clients. Our activities will change only to the degree that the resources of NM Capital will be enhanced," he said. "This alliance gives our clients an unbeatable combination." -0- 5/7/92 /CONTACT: Bill Benintende of John Hancock Mutual Funds, 617-375-1883/ (PDF PDT DIV) CO: John Hancock Mutual Fund ST: Massachusetts IN: FIN INS SU:
TM -- NE004 -- 7666 05/07/92 13:19 EDT
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|Date:||May 7, 1992|
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