Back To List Print Page
  • Seller
  • Buyer
  • Type
  • Date Announced
  • Seller AUM
  • North Track Funds (The Ziegler Companies, Inc.)
  • HighMark Funds (HighMark Capital Management, Inc.)
  • Mutual Fund
  • February 17, 2009
  • $600 Million

Seller Details

The Ziegler Companies, Inc. (symbol: ZGCO) is primarily known as a growth-oriented, boutique investment banking and investment services firm with a primary focus in the healthcare, senior living, church, school and renewable energy sectors. Operations encompass capital markets (capital advisory services, bond underwriting, mortgage banking, institutional sales and trading) and wealth management, including asset management and investment services.

Nationally, Ziegler's Capital Markets is ranked as one of the leading investment banking firms for not-for-profit healthcare and senior living providers, as well as religious institutions and schools.

Ziegler Wealth Management (retail brokerage) encompasses investment and consulting services for individuals, families, business owners and institutions nationwide.

Ziegler's alternative investing activities include raising and deploying capital through private investment funds with investment objectives related to the real estate, services and technology sectors of the healthcare and senior living industries.

Ziegler Capital Management, LLC provides institutional money management products and services as well as separate account management and mutual fund sub-advisory services.

Buyer Details

San Francisco-based HighMark Capital Management, Inc. (HCM), a registered investment adviser, is a wholly-owned subsidiary of Union Bank, N.A., with over $17 billion in assets under management for individual and institutional investors worldwide. HCM is also the adviser to the HighMark Funds, with 24 individual funds and over $8 billion in assets. HighMark Funds Distributors, Inc., an affiliate of PFPC Distributors, Inc., is the principal underwriter of HighMark Funds.

Transaction Summary

The Board of Trustees of the HighMark Funds and the Board of Directors of the North Track Funds have approved reorganization agreements pursuant to which all of the funds in the North Track mutual fund family except for the Cash Reserve Fund and the Strategic Allocation Fund will, if the reorganizations are approved by the shareholders of the funds, transfer their assets and identified liabilities to certain funds in the HighMark Fund family. Shareholders of the affected North Track Funds would receive shares of the applicable HighMark Fund.

It is anticipated that the North Track Wisconsin Tax-Exempt Fund (PWTEX), North Track Equity Income Fund (NJPAX), North Track NYSE Arca Tech 100 Index Fund (PPTIX), and North Track Geneva Growth Fund (PNMAX) will be reorganized into newly-organized HighMark Funds to which HighMark Capital Management, Inc. will be investment adviser and administrator. The remaining four long-term funds currently offered by North Track are expected to be reorganized into existing HighMark Funds. Collectively, the assets in the transferring North Track Funds represented approximately $591 million on January 31, 2009.

Ziegler Capital Management, LLC, the current investment advisor for the North Track Funds, is expected to be retained as sub-advisor to the new HighMark Wisconsin Tax-Exempt Fund, HighMark Equity Income Fund and HighMark NYSE Arca Tech 100 Index Fund. Geneva Capital Management, Ltd., the current sub-advisor to the Geneva Growth Fund, is anticipated to continue to act as sub-advisor to the HighMark Geneva Growth Fund.

“We are pleased with our newly formed relationship with HighMark,” notes Ziegler's Chief Executive Officer, Tom Paprocki. “Retail mutual fund operations and distribution is a highly specialized business, and it's not our Firm's core area of expertise. HighMark has an excellent reputation, substantial experience, scale and commitment to future growth in the retail mutual fund space – all good for the North Track shareholders.”

Earle Malm, President and CEO of HighMark Capital Management, Inc., says, “We are excited about the potential addition of the North Track funds to the HighMark Funds family allowing us to provide additional investment options for our shareholders while enhancing HighMark Funds' nationwide distribution capabilities. Additionally, we are pleased about the opportunity to add two additional money management firms to our already high-quality list of sub-advisory firms.”

To complete the dissolution of the North Track Funds, the Strategic Allocation (STRATA) Fund and Cash Reserve Funds will be liquidated.

Back To List