SEATTLE, Nov. 12, 2012 /PRNewswire/ -- Parametric Portfolio Associates LLC (Parametric), a Seattle-based subsidiary of Eaton Vance Corp. (NYSE: EV), today announced the signing of a definitive agreement to acquire the business of The Clifton Group Investment Management Company (Clifton).
Based in Minneapolis, Clifton specializes in providing futures- and options-based overlay services and custom risk management solutions to institutional investors. Clifton's overlay services enable clients to add, remove or hedge market exposures in a transparent and efficient manner without disrupting underlying holdings. Clifton's risk management strategies employ futures, options and similar instruments to help clients enhance risk-adjusted returns. As of September 30, 2012, Clifton managed $33.4 billion of funded and overlay assets on behalf of approximately 180 institutional clients.
Clifton is currently owned 80% by non-employee shareholders and 20% by Clifton's three principals: Chief Investment Officer Jack L. Hansen, Senior Portfolio Manager Thomas B. Lee and Managing Principal Kip Chaffee. Each principal will exchange Clifton stock for Parametric equity and will continue in his current role pursuant to a long-term employment agreement entered into at closing. 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, and no changes in Clifton personnel are expected as a result of the transaction.
"Our vision for Parametric is to offer an industry-leading platform of portfolio implementation, risk management, tax management and engineered investment strategies to sophisticated investors around the globe," said Mr. Langstraat. "Clifton's strengths in overlay and risk management solutions complement our existing capabilities and add meaningfully to our product offerings. We are thrilled to welcome our new Clifton colleagues to the Parametric team."