American Century to Buy Two Kopp Mutual Funds
September 18, 2006
American Century Investments will acquire Kopp Investment Advisors' two mutual funds, which have a value of $300 million to $350 million. Terms of the deal were not disclosed. Kopp said it agreed to the sale so that it can focus on its core competency: private account management.
American Century will merge the two Kopp funds, the Kopp Emerging Growth Fund and the Kopp Total Quality Management Fund, into two of its existing funds, the American Century New Opportunities II Fund and the American Century Equity Growth Fund, respectively. The former is a small-cap growth fund and the latter is large-cap growth. The companies plan to complete the acquisition in February.
"The additional assets will allow us to reach a fee breakpoint on one of our key strategies, New Opportunities II," noted David Tucker, senior vice president of business development at American Century.
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