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Clifton Combines with Parametric

We are pleased to inform you that Parametric Portfolio Associates LLC (Parametric) has agreed to acquire the business of The Clifton Group Investment Management Company (Clifton) in a transaction that is anticipated to close on or about December 31, 2012. 

Parametric is a Seattle-based investment management firm focused on the delivery of rules-based, risk-controlled strategies, including engineered alpha-seeking portfolios, options strategies and customized equity and centralized portfolio management implementation services. As of September 30, 2012, Parametric managed $53.1 billion of client assets.  Parametric is a majority-owned subsidiary of Eaton Vance Corp., one of the oldest investment management organizations in the U.S., with a history dating back to 1924.  As of September 30, 2012, Eaton Vance and its controlled affiliates had assets under management of $198.2 billion. 

Clifton is currently owned 80% by non-employee shareholders and 20% by Clifton’s three principals: Chief Investment Officer Jack Hansen, Senior Portfolio Manager Tom Lee and Managing Principal Kip Chaffee.  Each Clifton principal will receive equity in the combined firm and will continue in his current role pursuant to a long-term employment agreement entered into at closing.  It is expected that an additional group of Clifton employees will also become equity holders in the combined firm. Clifton will operate as a division of Parametric, with Kip Chaffee reporting to Brian Langstraat, Parametric’s Chief Executive Officer, and Jack Hansen retaining responsibility for leading Clifton’s investment function.  Clifton will continue in its current location in the Minneapolis area and no changes in Clifton personnel are expected as a result of the transaction. 

Clifton and Parametric share a focus on partnering with clients to help achieve return objectives and manage risk.  Clifton’s strengths in overlay management and custom risk-management solutions complement Parametric’s existing capabilities.  With Clifton joining the Parametric family, we believe our ability to help clients meet these goals will be significantly enhanced. 

Please contact Clifton to further discuss any questions you may have regarding this exciting news.

press-release-nov.2012

Parametric Clifton    |    3600 Minnesota Drive, Suite 325, Minneapolis, MN 55435
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