Ronald Calvert
Munro Partners (Munro) and CI Global Asset Management (CI GAM) has announced an agreement under which Munro will acquire GSFM Pty Limited (GSFM), CI GAM’s Australian investment fund management affiliate.
As part of the transaction, Toronto-based CI Financial Corp., CI GAM’s parent company, will receive an increased minority ownership interest in the Munro business.
The deal deepens the relationship between Munro and CI GAM and positions the firms for a new phase of growth in both Australia and Canada. Munro currently has A$8.6 billion in assets under management, serving as investment manager in Australia with products being distributed by GSFM, and as portfolio advisor to funds distributed in Canada by CI GAM.
In addition to the Munro funds, GSFM distributes a diverse range of investment funds sub-advised by CI GAM and several high-quality third-party investment firms.
Once the acquisition is completed, GSFM’s Australian distribution team and funds management operations will be integrated with the Munro team and will continue to distribute GSFM funds. Munro will also add resources to the combined firm’s Australian client service and distribution functions, providing enhanced support to its intermediary partners and investor base.
Ronald Calvert, Chief Executive Officer of Munro Partners, said the transaction creates the right long-term outcome for clients, advisers and employees by aligning distribution and investment management.
“Strategically, we can continue to grow the Australian business in a more sustainable way by investing in the skills and capabilities of the distribution team and aligning the GSFM business more closely with Munro’s partnership model.”
There will be no changes to Munro’s investment management team, investment philosophy or investment process as a result of the transaction.
Marc-André Lewis, President and Chief Investment Officer of CI GAM, said the transaction reflects the strength of the relationship that CI GAM and Munro have built over many years. GSFM has been distributing Munro funds since 2017.
“This transaction creates a stronger firm with a more diversified, scalable platform that is well positioned for continued growth in both the Australian and Canadian markets,” Mr. Lewis said.
Transaction highlights
- Munro will create a stronger, more integrated Australian investment and distribution platform through the addition of GSFM.
- Munro will continue to distribute GSFM funds.
- As a result of the transaction, Munro will put additional resources into its Australian distribution, providing a higher level of service for investors and intermediary partners.
- CI GAM’s parent will increase its minority interest in the Munro business, deepening their strategic alliance and commitment to long-term growth in both Australia and Canada.
- CI GAM will continue to distribute funds sub-advised by Munro in the Canadian market.
The transaction is conditional on receipt of customary regulatory approvals and is expected to be completed in the fourth quarter of this year.