THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Friday, July 14, 1995 TAG: 9507140407
SECTION: BUSINESS PAGE: D2 EDITION: FINAL
SOURCE: BY TOM SHEAN, STAFF WRITER
LENGTH: Short : 36 lines
Signet Banking Corp. said Thursday it added $900 million to its mutual-fund operation by acquiring the assets of Sheffield Management Co. and Sheffield Investments Inc.
The Sheffield companies, based in New York, managed and distributed the Blanchard group of 11 mutual funds.
Signet, the Richmond-based parent of Signet Bank, said the transaction boosted its mutual-fund assets to $2.4 billion and increased the number of its funds from 8 to 19. The terms of the transaction were not disclosed.
Michael Freedman, Sheffield's president and chief executive officer, will continue to run the Blanchard funds, Signet said. Freedman has been named executive vice president of a Signet subsidiary, Signet Financial Services.
Like several other bank holding companies, Signet has expanded its mutual-fund operations in an effort to generate additional fee income and hold onto its retail customers.
The acquisition ``follows our whole information-based strategy,'' said Robert M. Morano, a Signet spokesman. Sheffield was one of the few mutual companies that marketed its funds exclusively by direct mail, he said.
Signet has attempted to provide more of its services, including credit cards, home loans and student loans, through alternative systems like direct mail and telemarketing and reduce its reliance on branches.
Signet said Sheffield's offices in New York City and Stowe, Vt., will remain open. by CNB