Toronto-based Mackenzie Financial Corp. and its indirect parent company, Montreal-based Power Corp. of Canada, now hold a combined 27.8% interest in China Asset Management Co. Ltd. (China AMC), the firms announced Thursday.
Mackenzie finalized its acquisition of a 13.9% interest in China AMC, which involved two separate transactions previously announced on Dec. 29, 2016 and Jan. 5.
Similarly, Power Corp. has completed the acquisition of 3.9% equity interest in China AMC, which had also previously been announced on Jan. 5. The firm also holds a 10% interest in China AMC from an acquisition in 2011. Thus, Power Corp. now also holds a direct 13.9% equity interest in China AMC.
The acquisition of a fund management company in China is advantageous, in part, because "China is the second-largest economy and the world's second-largest stock market," says Jeff Carney, president and CEO of IGM Financial Inc., Mackenzie's parent company and a Power Corp. subsidiary.
"We believe that China AMC is the premier asset management firm in China, with $232 billion in assets under management as of Dec. 31, 2016, and it has more retail customers — 40 million — than we have people in Canada," he adds.
Adds Barry McInerney, Mackenzie's president and CEO: "Our investment in China AMC will allow both companies to identify opportunities to work together on developing products in each other's geographies and will lead the way to further subadvisory relationships."
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