Allied Investment Advisors is spun off from 1st Maryland New subsidiary has $6 billion in assets

July 11, 1996|By Bill Atkinson | Bill Atkinson,SUN STAFF

First Maryland Bancorp said yesterday that it had spun off an investment advisory unit with nearly $6 billion in assets under management into a separate subsidiary.

The $10.5 billion-asset banking company formed Allied Investment Advisors Inc. because it believes the unit will have more success generating business as an independent subsidiary, and not as a part of its trust division.

"There is a stigma, an unfair one, that bank trust departments aren't good at managing money, and that they can't hire and keep good people," said Jennifer W. Lambdin, president and chief investment officer of Allied Investment Advisors.

"This helps address that."

Allied Investment will continue to operate as a subsidiary of First National Bank of Maryland, but it will have its own headquarters at 100 E. Pratt St. in Baltimore.

It is one of two money management units owned by the holding company.

First Maryland Bancorp last month completed its acquisition of money manager Zirkin-Cutler Investments in Washington, which also operates as an independent subsidiary.

Allied Investments manages pension, endowment and retirement plans as well as assets for labor unions, hospitals and corporations.

Clients include the Maryland Automobile Insurance Fund, the International Brotherhood of Electrical Workers, the University of Maryland Foundation and the University of Maryland Medical Systems, Lambdin said.

Allied Investment also has a family of nine mutual funds, called the ARK Funds, with $2.5 billion in assets under management.

The company plans to introduce as many as six new equity and bond funds before the end of the year, Lambdin said.

Allied, with about 30 employees, is one of the larger asset management firms in the Baltimore region competing with Legg Mason Capital Management Inc., Alex. Brown Capital Advisory & Trust Co. and Investment Counselors of Maryland.

In June it received approval to operate as a subsidiary in 14 states that include Florida, Connecticut, California and Pennsylvania in addition to Maryland.

Lambdin said the company is looking first to expand in Pennsylvania, where it thinks it can sell its services to mid-sized companies that need help managing assets or pension plans.

Allied Investment Advisors is aiming to grow revenues by 25 percent in the next 12 months and add as much as $1.5 billion in assets over the next 12 to 18 months, she said.

Pub Date: 7/11/96

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