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  • Seller
  • Buyer
  • Type
  • Date Announced
  • Seller AUM
  • Pzena Focused Value Fund (Advised by Pzena Investment Management, LLC)
  • John Hancock Advisors
  • Mutual Fund
  • November 8, 2002
  • $22 Million

Seller Details

Pzena Investment Management, LLC, founded in 1995 and based in New York, provides investment management services for individual and institutional clients. The firm employs a classic value approach to investing, constructing portfolios of securities which are under-valued relative to their long term earnings power. The approach is disciplined, systematic and driven by research. Pzena sold the Pzena Focused Value Fund when the fund had $22 million of assets under management.

Buyer Details

John Hancock Advisors, a wholly-owned subsidiary of John Hancock Financial Services, Inc., manages approximately $26 billion in open-end funds, closed-end funds, private accounts, variable annuities and retirement plans for individual and institutional investors as of December 31, 2002.

Transaction Summary

John Hancock Advisors acquired the assets and shareholder base of Pzena Focused Value Fund, a classic value mutual fund. Pzena Investment Management, LLC will continue to manage the fund to be called the John Hancock Classic Value Fund, under a subadvisory agreement. John Hancock Advisors will provide distribution for this top performing mutual fund.

The strategic objective of the John Hancock Advisors is to acquire top performing mutual funds to fill gaps in investment styles where JHA lacks superior product. JHA focuses on firms with highly ranked mutual funds, as determined by Morningstar Inc. and Lipper, that have remained small due to a firm's narrow distribution capabilities. JHA readily distributes the acquired funds through its vast network of general agents, broker-dealers, direct brokerage, financial planners and banks. This distribution system, along with the John Hancock brand and reputation, provide a substantial platform from which to grow. JHA retains the investment manager as subadvisor. These transactions create financial and strategic benefits for both parties by combining the investment expertise and stellar track record of the investment manager with the distribution and marketing strength of JHA.

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