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EXHIBIT 99.1
[DAIN RAUSCHER LOGO]
INVESTMENT SERVICES NEWS
------------------- RELEASE
INVESTMENT BANKING
DAIN RAUSCHER ACQUIRES VOYAGEUR ASSET MANAGEMENT
MINNEAPOLIS (Oct. 18, 2000) - Dain Rauscher Corporation (NYSE: DRC) has agreed
to acquire Minneapolis-based investment advisory company Voyageur Asset
Management LLC from Dougherty Financial Group LLC, it was announced today by
John Appel, Dain Rauscher's vice chairman and president of fixed income capital
markets.
As part of the transaction, Voyageur is expected to merge with Dain
Rauscher's investment advisory subsidiary, Insight Investment Management Inc.
The new firm is expected to retain the Voyageur name, maintain its headquarters
in Minneapolis and operate as a wholly owned subsidiary of Dain Rauscher.
The terms of the transaction were not disclosed. It is expected to
close by the end of the year.
The combined firm will have assets under
management of almost $13 billion, nearly double the size of the firms'
individual totals. If the deal were to close today, the combined firm would rank
125th in industry league tables for assets under management.
"This transaction brings together two firms with many complementary
capabilities," Appel said. "The partnership allows us to take advantage of
economies of scale, leverages our retail and institutional distribution
capabilities, and diversifies our product base using each firm's strong
investment track record."
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"We are pleased to become part of a deeper investment management
platform through this partnership with Dain Rauscher," said John Taft, chairman
of Voyageur. "As client-focused organizations, the two firms have similar
cultures and values, and we offer complementary investment strategies. With Dain
Rauscher's commitment and resources, we believe we can significantly enhance the
range of investment services we offer and the quality of service we provide to
our investor clients."
In the newly formed organization, Taft is to become chief executive
officer of Voyageur reporting to Appel. Tom McGlinch and Charlie Henderson are
to serve as chief investment officers for Voyageur's fixed income and equity
strategies. Raye Kanzenbach, Insight's chief investment officer, is to be
Voyageur's senior fixed income portfolio manager.
Dain Rauscher has recently agreed to be acquired by the Royal Bank of
Canada (RBC). "The merger agreement with Voyageur is the next step in our
strategy to grow our asset management business and it demonstrates RBC's
commitment to support growth strategies in areas where we see the most
opportunities," Appel said.
Voyageur Asset Management LLC, a subsidiary of Minneapolis-based
Dougherty Financial Group (DFG) LLC, was established in 1983 as a fixed income
investment advisor of separate accounts and mutual funds. Currently, the firm
has $6 billion in assets under management, including $1 billion in equity and
balanced portfolios and $5 billion in fixed income assets. Voyageur has 50
employees in Chicago, Minneapolis and Sioux Falls, S.D. Dougherty Financial
Group is a financial services organization which has an interest in three
investment management firms: Clifton Group Investment Management Co. and
Dougherty & Co. in Minneapolis, and Segall Bryant & Hamill, an investment
advisor in Chicago. All three firms will remain with DFG following the close of
the Voyageur transaction.
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Insight Investment Management, founded in 1983, has more than $7
billion in total assets under management, including $6 billion in money market
accounts and $1 billion in separately managed portfolios and investment pools. A
leader in creating tax-exempt investments through municipal bonds, Insight also
serves as advisor for the Great Hall mutual funds, a family of proprietary money
market funds for Dain Rauscher private client and capital markets customers.
Dain Rauscher Incorporated, Dain Rauscher Corporation's broker-dealer,
is one of the nation's largest full-service securities firms with 1,200
investment executives and 3,800 employees. Dain Rauscher Incorporated serves
individual investors and small business owners through offices predominantly in
the western half of the United States, and capital markets and correspondent
clients in select U.S. and European markets. Founded in 1909, Dain Rauscher
Incorporated is a member of the New York Stock Exchange and other major
securities exchanges, as well as the Securities Investor Protection Corp. The
company's headquarters are at Dain Rauscher Plaza, 60 S. Sixth St., Minneapolis,
55402-4422.
Contact: Dan Callahan at 612-313-1234 or [email protected]
