Washington Mutual Sells Fund Unit
The unit, WM Advisors, had $26.4 billion in assets under management as of June 30. The deal is expected to result in a pretax gain of at least $650 million, Washington Mutual said.
"This transaction is in keeping with our strategy to streamline our business model and sharpen the focus of our products and services which target U.S. middle-market consumers and small businesses," said Washington Mutual Chairman and Chief Executive Kerry Killinger in a statement. "The 'manufacturing' of retail mutual funds by WM Advisors is not part of our core business."
Just last week, Washington Mutual agreed to sell its mortgage-servicing business to Wells Fargo (WFC) for an undisclosed sum. The company said at the time it was seeking to sell WM Advisors.The Seattle-based company will continue to sell mutual fund, annuity and retirement products through its broker-dealer unit. Meanwhile, Principal will offer funds and annuity products to WaMu customers after the deal closes. Principal had $205.3 billion in assets as of March 31, and the purchase is expected to boost its mutual fund assets to about $49 billion. The Des Moines, Iowa, company predicts the deal will add to earnings beginning 2007. The transaction is expected to close in the fourth quarter.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV