May 15, 2019 11:30
Photo : Freepik
Financial Foresters has sold its subsidiary asset Management Foresters at Fiera Capital, which has acquired all of the outstanding shares. The assets under management to Fiera in the liability driven investments will amount to more than $ 25 billion dollars (G$) with the addition of assets of$ 10.5 billion asset Management Foresters.
“The consolidation of asset Management Foresters with Fiera Capital will enhance our capacity for leading institutional equity and fixed income for PGI in Canada. This transaction will give Fiera Capital the opportunity to strengthen its relations with the Financial Foresters and its customers, in addition to being a transaction financially attractive, ” stresses Jean-Philippe Lemay, president and chief operating officer of the canadian division of Fiera Capital.
“Fiera Capital has a team of experienced management and displays a solid track record of performance, which will provide investment solutions sound clients of asset Management Foresters. They will have access to a wider range of strategies related to fixed income securities, equities, and private placements, ” says Jim Boyle, president and chief executive officer of Financial Foresters.
The company stated that some of the portfolio managers of Foresters will remain in the service of the company, without specifying the number.
The terms of the transaction, which is expected to close in the third quarter of 2019, were not disclosed. The acquisition “is expected to be slightly accretive” on the adjusted earnings per share of Fiera Capital for the first full year following the closing of the transaction, announced the company.
Refocus on life insurance
The announcement of the sale of the u.s. operations of asset management of Financial Foresters in April, Jim Boyle, had said they want to refocus the activities of the company on a life insurance policy.
“As of today, with the announcement of the transactions, we will focus on innovation, the development of new products and the growth of our brand and our market share in our core business, life insurance. These transactions will allow the Financial Foresters to pursue its goal to enrich the lives of its members and their communities. ”
Foresters said they want to tackle ” to mass markets and through reaching out to families, because it is a niche market neglected by the financial institutions of the United States, as well as those of Canada and the United Kingdom, the three geographic areas where it concentrates its activities. Only in the United States, this market of families under-insured accounts for approximately 39 million households. “