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Toronto's financial distrct.Adrien Veczan/The Canadian Press

IGM Financial Inc. has merged its two investment management groups into a single shop that will be housed under the Mackenzie Investments brand.

IGM, which manages more than $150-billion in assets, said the investment management functions of Investors Group and Mackenzie Investments will be joined together to form a single global investment management organization to support both companies.

"Investors Group and Mackenzie Investments have a long history of sharing services in a number of areas, which is an important benefit to being part of a combined organization," said Jeff Carney, president and CEO, IGM Financial Inc. and Investors Group in a statement.

As a result of the merger, 55 core investment fund mandates will now be subadvised by the combined team under Mackenzie Investments.

Both Investors Group and Mackenzie Investments will continue to maintain independent fund shelves and brands. The merger of the investment groups will have minimal impact for the two mutual fund families with no fund closings or mergers planned. Investors Group will continue to offer products using a combination of in-house portfolio management supplemented with third-party investment talent.

As a result of the merger, a small number of portfolio managers and operational staff will lose their jobs, according to a spokesperson for IGM.

The new entity will continue to maintain its multiboutique and asset class structure and offer products for Investors Group's advisers, Mackenzie's distribution channels and the clients they serve.

The announcement has been viewed as "incrementally positive" by analysts, who see potential cost synergies from more efficient investment teams.

"Mackenzie has generated stronger relative Fund performance between the two," wrote Scott Chan, research analyst with Canaccord Genuity Corp. in a research note on Thursday. "Scale as one entity could help overall fund performance."

Earlier this year, Investors Group announced that more than 20 of its mutual fund products would be merging into existing fund products – including the Alto portfolios merging with the Allegro portfolios. Those fund mergers came into effect early in September.

The combined investment manager will be led by Tony Elavia, executive vice-president and chief investment officer of Mackenzie Investments, while Jeff Singer, executive vice-president and chief investment officer of Investors Group, will retire on Dec. 31, 2017.

Mr. Singer and Mr. Elavia will continue to work closely for the remainder of the year to ensure a smooth transition for the two firms.

"I want to personally thank Jeff Singer for his dedication to his team and his significant accomplishments during his four years as CIO, including improved investment performance and the development of strong talent," Mr. Carney said.

The acquisitions for the North American operations are expected to close on Nov. 1, 2017, while the offices in Dublin and Hong Kong will move over effective Jan. 1, 2018.

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