Citigroup is selling Financial Research

Financial Research Corp., a well-known Boston mutual fund data company, is being sold by parent company Citigroup Inc. to another Boston firm in the financial services sector.

The new owner, Mercatus Partners LLC will be the fifth owner of FRC since 1996. Terms were not disclosed.

FRC's monthly reports on mutual fund companies' assets under management are widely followed within the industry for comparing which funds and firms are gaining or losing money from investors, especially now that stock markets have thrown the industry into turmoil.

Mercatus managing partner Robert B. Hedges Jr. said he plans to keep FRC intact under its own brand, as part of Mercatus, which is a strategy consulting firm for consumer financial services companies.

"These are turbulent times in the asset management and mutual funds business, and that's why the industry needs a strong, independent FRC," Hedges said. "Our intention is to invest and nurture it and make sure it can play the industry's leadership role." FRC currently has 20 employees.

Citi said the deal "reflects the strategic direction of Citi to divest noncore assets and businesses, reduce headcount and expenses, while freeing up capital to invest in more productive, core businesses. We believe this transaction will enhance the value that FRC delivers to its clients."

The New York financial giant is in its own financial upheaval and this week said it would reduce employment by 52,000 positions next year by selling off divisions and employee layoffs.

FRC was created in 1987 by Neil Bathon, who left the company in 2006 and recently started a separate investment research company in Wellesley, Fuse Research Corp.

Bathon sold FRC in 1996 to Boston Institutional Group, which in turn was purchased by Bisys Group Inc. of New Jersey in 2001. Citi bough Bisys last year.

FRC's previous president Michael Evans left to join Bathon's venture this summer. Deborah Wetherbee, FRC senior vice president, said the company is currently seeking to fill the role.

Ross Kerber can be reached at kerber@globe.com.