TSX Symbol: CIX
TORONTO and SYDNEY, Nov. 2,
2016 /CNW/ - CI Financial Corp. ("CI") and Grant Samuel
Funds Management ("GSFM") announced today an agreement under which
CI will purchase an 80% stake in GSFM.
GSFM is a leading independent manager and distributor of
investment strategies and products in the Australian and
New Zealand markets with assets
under management in excess of A$6
billion. Terms were not disclosed. The transaction is
expected to close on or about November 15,
2016.
"We are very excited to partner with a well-established firm led
by an experienced and highly regarded management team," said
Peter W. Anderson, Chief Executive
Officer of CI. "This acquisition aligns CI with a proven competitor
in one of the world's fastest-growing pension markets, and is a
significant new platform for CI as we expand our presence in global
markets."
"With this transaction, GSFM gains the backing of an
accomplished asset management and distribution firm that is one of
the largest investment fund companies in Canada," said Andrew
McKinnon, CEO of GSFM.
"The CI business model is similar to the GSFM model and the two
businesses are culturally aligned. The move will allow GSFM to
continue to develop and further build upon its already strong
client relationships for its existing partners – Epoch, Tribeca,
Payden & Rygel and Triple 3 – in the institutional and retail
markets."
Under the transaction agreement, current GSFM executives will
retain a 20% stake in the company. The existing GSFM team will
remain in place, and executives including CEO Andrew McKinnon, Head of Distribution Damien
McIntyre and COO Peter Nichols will
continue to manage all aspects of the company. The company will
continue to operate under the GSFM name.
"CI has been looking for an opportunity to further expand
outside Canada, and Australia was identified as an attractive
market, with strong organic growth and a sophisticated investor
base," Mr. Anderson said."We look forward to working with the GSFM
team to support the continued rapid growth of their business."
Grant Samuel Funds Management (GSFM) was established in
July 2007 and is a subsidiary of the
Grant Samuel Group, and co-owned by the executives of GSFM. Grant
Samuel Group is an independent investment advisory house founded in
1988 and owned by its executives. GSFM specializes in marketing
funds managed by high-calibre local and international managers to
Australian and New Zealand
institutional and Australian retail investors. GFSM has
relationships with investment managers Epoch Investment Partners,
Inc. of New York, Tribeca
Investment Partners of Sydney,
Payden & Rygel of Los Angeles,
and Triple 3 Partners Pty Ltd. of Sydney. GSFM also owns an equity stake in
Tribeca, a successful boutique manager which has been investing
clients' funds since 1999. GSFM currently represents over
A$6 billion in funds under management
(as at 31 October 2016). For more
information about GSFM, please visit the website:
www.gsfm.com.au.
CI Financial Corp. is an independent, Canadian-owned
wealth management company with approximately C$149 billion in fee-earning assets as of
October 31, 2016. Its primary
operating businesses are CI Investments Inc., one of Canada's largest investment managers, advisory
businesses Assante Wealth Management and Stonegate Private Counsel,
and First Asset Capital Corp., a leader in providing actively
managed exchange-traded funds to the Canadian marketplace. CI is
listed on the Toronto Stock Exchange under the symbol CIX. Further
information is available at www.cifinancial.com.
This press release contains forward-looking statements with
respect to CI Financial and its products and services, including
its business operations and strategy and financial performance and
condition. Although management believes that the expectations
reflected in such forward-looking statements are reasonable, such
statements involve risks and uncertainties. Actual results may
differ materially from those expressed or implied by such
forward-looking statements. Factors that could cause actual results
to differ materially from expectations include, among other things,
general economic and market factors, including interest rates,
business competition, changes in government regulations or in tax
laws, and other factors discussed in materials filed with
applicable securities regulatory authorities from time to
time.
SOURCE CI Financial Corp.