Foresters Financial has entered into an agreement with Fiera Capital to sell its Canadian asset management business Foresters Asset Management for an undisclosed amount.
Foresters Financial said that the transaction is aligned with its strategic plan, which aims to focus on and invest in its core life insurance business.
The transaction follows the company’s recent announcement to sell the assets related to its US asset management business, including First Investors mutual funds and its US broker dealer and advisory business.
Fiera Capital will merge the Foresters Asset Management business into its existing operations in Canada.
Subject to regulatory and shareholders’ approval, the deal is expected to be closed in the third quarter of this year.
Foresters Financial president and CEO Jim Boyle said: “This transaction is the natural evolution of executing on our 5-year strategic plan. It puts us in a position of strength as we focus on streamlining and optimizing life insurance products for middle-market families, a largely underserved and underinsured group in both Canada and the U.S.”
After the deal is closed, Foresters will continue to have a long-term relationship with the company, as Fiera will manage a portion of its assets.
Fiera Capital Canadian division president and chief operating officer Jean-Philippe Lemay said: “We are excited to partner with Foresters Asset Management’s clients to provide leading-edge solutions to achieve their financial, regulatory and capital objectives.
“The combination of Foresters Asset Management with Fiera Capital will enhance our leading Canadian institutional fixed income capabilities and amplify our suite of Liability Driven Investing (LDI) strategies focused on insurance clients.”
In February, Fiera Capital completed the sale of Fiera Capital Mutual Funds to Canadian mutual fund company Canoe Financial.
Fiera Capital Mutual Funds include: Fiera Capital Diversified Bond Fund, Fiera Capital Income and Growth Fund, Fiera Capital High Income Fund, Fiera Capital Core Canadian Equity Fund, Fiera Capital Equity Growth Fund, Fiera Capital U.S. Equity Fund, Fiera Capital Global Equity Fund, Fiera Capital International Equity Fund and Fiera Capital Defensive Global Equity Fund.