Acquisition bolsters industry’s independent segment

Today’s move on the mutual fund management front will create ‘one of the largest’ independent players the industry has ever known

Acquisition bolsters industry’s independent segment
The Canadian independent mutual fund landscape was altered after O'Leary Funds Management and Canoe Financial announced a deal that will combine the mutual fund and closed-end fund businesses of both managers under the Canoe banner.

The deal sees Canoe become one of the largest Canadian independent fund managers, with portfolio assets of almost $4 billion across equity and fixed income strategies. Release issued Thursday did not speak to individual asset under management for either company.

Kevin O'Leary will become Vice Chairman of Canoe and Connor O'Brien will remain CEO of Stanton Asset Management (retained as portfolio sub-advisor of selected strategies for Canoe).

"Canoe is an excellent strategic partner because they are independent and advisor-focused, with a similar investment philosophy and excellent performance across their group of funds,” said O’Leary. “We share the vision of developing a leading Canadian independent fund manager focused on performance and enabling Canadian investors to achieve their financial goals."

The transaction is expected to close within 90 days, subject to regulatory and unitholder approvals and other customary closing conditions.

It’s a deal that could pay dividends for advisors.

"This combination provides scale that we expect will benefit advisors and investors, and brings together an excellent selection of fixed income and equity strategies, as well as energy expertise,” said O’Brien.