CI Financial to acquire a majority stake in Grant Samuel Funds Management, a leading Australian investment fund manager
TORONTO and SYDNEY, Nov. 2, 2016 – 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.