Merger Fuels Growth for Independent Investment Management Firms
BEACHWOOD, Ohio, Feb. 6, 2012 /PRNewswire/ -- Two well-acquainted investment management firms completed a long-planned merger last week, creating one of the larger independent money managers in Ohio with 19 employees and more than $450 million in assets under management.
Tower Wealth Management is now part of Beachwood-based Carnegie Investment Counsel. All Tower staff joined Carnegie, including principals Ensign Cowell and S. Sterling "Ted" McMillan as directors and senior wealth managers.
The motivation? Increase research depth and client service capabilities while spreading out the increasing cost of regulatory compliance.
"Carnegie clients now get full access to the experience of Tower's investment professionals," said Richard Alt, principal and chief investment officer of Carnegie, "and Tower clients are now part of a firm with enhanced resources, operations and customer support."
Final papers for the combination were signed last week, although all Tower clients signed transfer documents in the late fall. Carnegie, which has clients throughout Ohio, manages investments for individuals, endowments and foundations.
While managing regulatory compliance has become an increasing challenge for money managers, Alt says increasing research and account management resources were the primary drivers for combining the firms. Carnegie has grown 30 percent each of the past two years.
"Our approach to investing and serving clients and our values are exactly the same," Alt said. "Tower was an independent. We have been since 1974 and will continue to be because our clients want unbiased investment advice. We help clients achieve their goals while taking as little risk as possible rather than chasing performance or selling products."
Carnegie does not use mutual and bond funds or packaged investment products. Instead, it selects stocks and bonds to meet individual objectives for income, return and tax impact.
"Owning individual stocks and bonds provides for traditional, low cost and direct access to the markets while eliminating high management fees of mutual funds and wrap accounts," Alt explains. "It enables far greater control of quality and tax management. A fund or index forces participation in areas we might want to avoid such as US Banks or parts of Europe."
Experience working together previously smoothed the transition. Alt worked with Cowell and McMillan for several years at Greenleaf Capital Management before purchasing Carnegie in 2009 with Gary Wagner.
"We shook hands nearly a year ago and have been working to plan and implement the transition since then," said Alt. This includes a joint weekly investment strategy meeting throughout 2011.
Carnegie, like Tower, is a noncustodial asset manager. This means funds are held at an unrelated bank or brokerage house where clients have complete access to reports and their money.
Based in Cleveland suburb Beachwood, Carnegie Investment Counsel is an SEC Registered Investment Advisor. Carnegie provides investment and wealth management services to qualified individuals, foundations and endowments. Started in 1974, Carnegie is the successor to the investment management arm of the regional brokerage firm Prescott, Ball and Turben.
Contact
Jerry Pignolet, Power Marketing/Public Relations 440.527.0446
[email protected]
SOURCE Carnegie Investment Counsel
Share this article