Evergreen Investments

Evergreen Investments was the investment-management business and mutual-fund brand associated with Wachovia Corporation. Its institutional and retail operations brought together several predecessor businesses, most notably the Keystone mutual-fund family and the legacy Evergreen Funds associated with First Union. The underlying history therefore reached back to 1932, when Keystone Investments established one of the early major mutual-fund families in the United States. Keystone operated as an employee-owned investment organization and built a retail fund platform of more than 25 funds. In the 1990s, First Union, the parent of the legacy Evergreen Funds, acquired the Keystone Fund Family. The combination was carried out between 1996 and January 1998, after which the funds operated under the surviving Evergreen name. The combined organization offered more than 80 retail and institutional mutual funds and was organized into retail and institutional divisions. Evergreen expanded beyond traditional mutual funds through acquisitions, affiliated advisory businesses, and distribution relationships. In 1999 it acquired Tattersall Advisory Group, a fixed-income investment adviser, as a wholly owned subsidiary. The same year, the Wachovia organization acquired OFFIT, which later operated as Evergreen OFFIT. After the 2001 merger of First Union and legacy Wachovia, the combined bank adopted the Wachovia name and brought the relevant mutual-fund businesses together under the Evergreen Funds identity. In 2002, the retail and institutional operations were placed under Evergreen Investment Management Company, LLC. Evergreen Investment Services distributed the mutual funds, while Evergreen Service Company served as transfer agent. The organization described itself as a diversified asset manager serving multiple lines of business, including institutional portfolios, mutual funds, variable annuities, alternative investments, and private accounts. A 2003 relationship with GMO LLC added an asset-allocation fund-of-funds offering whose underlying investments included GMO institutional funds. The platform continued to broaden its capabilities in the mid-2000s. Evergreen acquired a majority interest in Metropolitan West Capital Management, a manager associated with intrinsic-value strategies, and obtained a majority interest in European Credit Management Limited, a London-based provider of European credit absolute-return solutions. It also launched Wachovia Global Asset Management for sales and distribution outside the United States. Following Wachovia's acquisition of Golden West Financial, the Atlas mutual funds were merged into corresponding Evergreen funds by the end of May 2007. At its reported peak in the reference period, Evergreen managed approximately US$245.9 billion in assets as of June 30, 2008, with 83 mutual funds, approximately 2.7 million mutual-fund shareholders, and 1,064 employees. It ranked among the largest asset managers in the United States and among the country's largest mutual-fund families. The organization was also affected by regulatory scrutiny: in 2007, the U.S. Securities and Exchange Commission announced a settlement concerning market-timing violations involving Evergreen and affiliates. Wells Fargo acquired Wachovia during the financial crisis. As Wells Fargo consolidated the acquired businesses, Evergreen's funds and operations were combined into Wells Fargo's fund-management structure, including Wells Fargo Advantage Funds. The Evergreen brand was officially retired on July 20, 2010. It therefore survives primarily as a historical brand within the development of the mutual-fund and asset-management businesses assembled by First Union, Wachovia, and later Wells Fargo.

Evergreen Investments developed from the combination of investment businesses assembled by First Union and Wachovia rather than from a single independently founded company. Its oldest cited predecessor was Keystone Investments, founded in 1932. Keystone created one of the early large mutual-fund families in the United States and remained employee-owned and operated until its later combination with the First Union-owned Evergreen Funds. Before the combination, Keystone offered more than 25 retail mutual funds. First Union acquired the Keystone Fund Family in 1996 and began integrating it with its existing Evergreen Funds operation. The integration was substantially completed by January 1998. The merged platform continued under the Evergreen name and offered more than 80 retail and institutional mutual funds. In 1998, the business began operating through separate retail and institutional divisions, reflecting the different distribution and service requirements of individual and institutional investors. Expansion followed through acquisitions and affiliated advisory businesses. In 1999, Evergreen acquired Tattersall Advisory Group, a fixed-income investment adviser, and maintained it as a wholly owned, freestanding subsidiary. A separate Wachovia acquisition of OFFIT also became part of the broader Evergreen organization and operated as Evergreen OFFIT. These transactions increased the brand's range beyond packaged retail funds and strengthened its institutional and specialist investment capabilities. First Union and legacy Wachovia completed their merger of equals in 2001. The combined corporation adopted the Wachovia name, and the First Union-related Evergreen Funds and legacy Wachovia mutual-fund operations were brought together. In 2002, Evergreen's retail and institutional companies operated under Evergreen Investment Management Company, LLC. Evergreen Investment Services, Inc. handled mutual-fund distribution, while Evergreen Service Company, LLC acted as transfer agent for the funds. The resulting organization promoted itself as a diversified asset manager. Its scope included institutional portfolios, mutual funds, variable annuities, alternative investments, and private accounts. In 2003, Evergreen formed a relationship with GMO LLC to offer an asset-allocation fund of funds investing in underlying GMO institutional funds. The arrangement expanded Evergreen's product architecture while allowing it to combine its distribution platform with an external institutional investment manager. Evergreen continued to grow through strategic investments in specialist firms. In 2006, it acquired a majority interest in Metropolitan West Capital Management, an asset manager associated with intrinsic-value strategies. It also acquired a majority interest in European Credit Management Limited, based in London and focused on European credit absolute-return solutions. Wachovia Global Asset Management was introduced as the name used for sales and distribution outside the United States. After Wachovia acquired Golden West Financial in 2006, Golden West's Atlas mutual funds were merged into corresponding Evergreen funds by the end of May 2007. The organization faced regulatory problems during this expansion period. In September 2007, the SEC announced a $32.5 million settlement involving Evergreen and affiliates over market-timing practices. The regulator said that Evergreen had allowed certain shareholders to conduct market-timing trades in conflict with representations in the funds' prospectuses. Former officer William M. Ennis separately paid a civil penalty of $150,000 and a nominal disgorgement amount. Evergreen reported $245.9 billion in assets under management, 83 mutual funds, about 2.7 million mutual-fund shareholders, and 1,064 employees as of June 30, 2008. The business ranked among the largest asset managers and mutual-fund families in the United States. Its independent brand identity ended after Wells Fargo acquired Wachovia during the financial crisis. Wells Fargo consolidated the Evergreen operations into Wells Fargo Advantage Funds and related businesses, and officially retired the Evergreen Investments name on July 20, 2010. Outside the United States, the former distribution identity had been Wachovia Global Asset Management.

• 2010

  Evergreen brand is retired

  [1]Evergreen Investmentsen.wikipedia.org

  After Wells Fargo's acquisition of Wachovia and subsequent fund consolidation, the Evergreen name is officially retired on July 20.

• 2008

  Evergreen reports its reported peak scale

  [1]Evergreen Investmentsen.wikipedia.org

  As of June 30, Evergreen reports $245.9 billion in assets under management, 83 mutual funds, approximately 2.7 million mutual-fund shareholders, and 1,064 employees.

• 2007

  Atlas funds are merged into Evergreen funds

  [1]Evergreen Investmentsen.wikipedia.org

  Following Wachovia's acquisition of Golden West Financial, the Atlas mutual funds are merged into corresponding Evergreen funds by the end of May.

• 2006

  Evergreen expands through specialist investment businesses

  [1]Evergreen Investmentsen.wikipedia.org

  Evergreen acquires majority interests in Metropolitan West Capital Management and European Credit Management and introduces Wachovia Global Asset Management for international distribution.

• 2003

  Evergreen forms a relationship with GMO

  [1]Evergreen Investmentsen.wikipedia.org

  The organizations launch an asset-allocation fund of funds using underlying GMO institutional funds.

• 2002

  Evergreen Investment Management Company begins operating

  [1]Evergreen Investmentsen.wikipedia.org

  Evergreen's retail and institutional companies operate under a consolidated asset-management umbrella.

• 2001

  First Union and Wachovia merge

  [1]Evergreen Investmentsen.wikipedia.org

  The merger creates the new Wachovia Corporation and brings the relevant Evergreen and legacy Wachovia fund businesses together.

• 1999

  Tattersall Advisory Group joins Evergreen

  [1]Evergreen Investmentsen.wikipedia.org

  Evergreen acquires Tattersall Advisory Group and retains it as a wholly owned fixed-income advisory subsidiary.

• 1998

  Evergreen completes its Keystone integration

  [1]Evergreen Investmentsen.wikipedia.org

  The merger is completed by January, leaving the combined retail and institutional fund platform operating under the Evergreen name.

• 1996

  First Union acquires the Keystone Fund Family

  [1]Evergreen Investmentsen.wikipedia.org

  First Union begins combining Keystone's funds with its existing Evergreen Funds business.

• 1932

  Keystone Investments is founded

  [1]Evergreen Investmentsen.wikipedia.org

  Keystone Investments establishes the predecessor mutual-fund business that later contributes to the Evergreen platform.

A broadly diversified asset-management organization serving retail and institutional investors through mutual funds, managed portfolios, annuities, alternative investments, and private accounts. Its positioning emphasized breadth of investment capabilities and distribution across multiple business lines rather than a single specialist strategy.

• Retail and institutional mutual funds · 1997

  Evergreen mutual funds

  The central Evergreen offering was a broad mutual-fund family serving retail investors and institutions. The platform combined the former Keystone and Evergreen fund ranges and offered more than 80 retail and institutional funds after integration. Its strategies covered multiple asset classes and investment objectives, supporting Evergreen's positioning as a diversified fund provider rather than a narrowly specialized manager.

• Institutional asset management · 1998

  Institutional portfolios

  Evergreen managed customized portfolios and investment mandates for institutional clients in addition to distributing pooled funds. These activities formed part of the institutional company established during the Keystone-Evergreen integration and later operated under Evergreen Investment Management Company. The offering extended the brand's role from retail fund distribution to separately managed institutional investment relationships.

• Asset-allocation fund · 2003

  Evergreen-GMO asset-allocation fund of funds

  Introduced through Evergreen's 2003 relationship with GMO LLC, this offering gave investors access to an asset-allocation structure whose underlying holdings included GMO institutional funds. It represented an effort to combine Evergreen's fund-distribution platform with GMO's institutional investment capabilities.

• Fixed-income investment management · 1999

  Fixed-income strategies

  Through Tattersall Advisory Group, Evergreen offered specialist fixed-income investment management. Tattersall was acquired in 1999 and operated as a wholly owned subsidiary, adding dedicated bond-management expertise to Evergreen's broader retail and institutional platform.

• Alternative and credit investments · 2006

  European credit absolute-return strategies

  Evergreen expanded into European credit through its majority interest in European Credit Management Limited, a London-based investment manager focused on European credit absolute-return solutions. The business complemented Evergreen's traditional mutual-fund range with a more specialized alternative investment capability.

• 2007

  Market-timing settlement

  The SEC announced that Evergreen Investments and affiliates would pay $32.5 million to settle market-timing violations. The matter concerned the alleged allowance of market-timing trades by certain shareholders despite contrary statements in Evergreen fund prospectuses. Former officer William M. Ennis separately paid a $150,000 civil penalty and a nominal disgorgement amount.

  Source

Read more

• 2010

  Retire the Evergreen brand after the Wells Fargo-Wachovia acquisitionStrategy

  Background

  Wells Fargo acquired Wachovia and began consolidating overlapping fund-management brands and operations.

  Action taken

  Evergreen's business was merged into Wells Fargo Advantage Funds and related Wells Fargo structures, and the Evergreen name was officially retired on July 20, 2010.

  Aftermath

  Evergreen ceased to operate as an independent brand, while its investment products and capabilities continued within Wells Fargo's fund-management organization.

  Source

• 2006

  Acquire majority interests in specialist asset managersM&A

  Background

  Evergreen pursued broader investment capabilities beyond its core mutual-fund range.

  Action taken

  It acquired majority interests in Metropolitan West Capital Management and European Credit Management.

  Aftermath

  The acquisitions expanded Evergreen's exposure to intrinsic-value strategies and European credit absolute-return investing.

  Source

• 2001

  Combine First Union and legacy Wachovia fund businessesM&A

  Background

  The First Union-Wachovia merger created a new Wachovia Corporation and required alignment of the two organizations' mutual-fund operations.

  Action taken

  The Evergreen Funds and legacy Wachovia mutual funds were brought together under the Evergreen Funds identity.

  Aftermath

  Evergreen became part of the larger Wachovia asset-management structure and subsequently operated through consolidated retail and institutional companies.

  Source

• 1996

  Acquire and combine the Keystone Fund FamilyM&A

  Background

  First Union sought to combine Keystone's established mutual-fund platform with the legacy Evergreen Funds business.

  Action taken

  First Union acquired Keystone and integrated the funds under the Evergreen brand, with the merger completed by January 1998.

  Aftermath

  The combined organization offered more than 80 retail and institutional mutual funds and operated through retail and institutional divisions.

  Source

1. 1Evergreen Investmentsen.wikipedia.org