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  • Seller
  • Buyer
  • Type
  • Date Announced
  • Seller AUM
  • Synergy Asset Management Inc.
  • CI Fund Management Inc.
  • Mutual Fund
  • August 22, 2003
  • $1.4 Billion

Seller Details

Synergy Asset Management is a Toronto-based mutual fund firm that provides advisory services to Synergy Mutual Funds, which are distributed through brokers and financial advisors across Canada. Synergy, which pioneered the concept of style diversification, was founded by Joseph C. Canavan in 1997. It is one of the fastest growing mutual fund companies in Canadian history and has assets under management of $1.4 billion in 24 mutual funds.

Buyer Details

CI Fund Management is an independent, Canadian-owned investment management company with approximately $35 billion in fee-earning assets at July 31, 2003. It offers a broad selection of investment funds, including mutual funds, industry-specific funds, 100% RSP-eligible global funds, segregated funds and hedge funds. Following the acquisitions of Synergy, Assante Corporation and Skylon Capital, CI will become the second-largest fund manager in Canada.

Transaction Summary

CI will integrate Synergy into its existing mutual fund operations and plans to offer the Synergy family of mutual funds as part of its mutual fund lineup. Fund investors will benefit from CI's strong investment management record, commitment to world-class systems and technology and competitive fund operating costs. Mr. Canavan will join CI in an executive capacity, overseeing the company's distribution strategy. Royal Bank of Canada, one of Synergy's founding shareholders, will earn a return of 15% on its initial investment as a result of the transaction and further strengthen its relationship with CI as a third-party fund supplier and provider of capital markets services.

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