Toronto-based AGF Management Ltd. (AGF) is entering the exchange-traded fund (ETF) space with the announcement on Tuesday that it has acquired majority equity in Boston-based FFCM LLC (FFCM).
FFCM is an ETF advisor and asset-management firm founded in 2009 whose expertise is delivered through a family of alternative and smart-beta ETFs and several ETF managed solutions.
“This strategic acquisition strengthens our core competency in developing and managing quantitative solutions,” says Blake Goldring, AGF’s chairman and CEO, in a statement. “This reinforces AGF’s commitment to offering innovative solutions that focus on risk mitigation, while offering active market participation.”
“Partnering with AGF will allow us to grow our research, marketing and product development capabilities,” adds Bill Carey, FFCM’s CEO. “We are excited about bringing our ETF expertise and dynamic platform to the Canadian marketplace.”
FFCM is currently co-portfolio advisor of AGF U.S. Sector Class, a fund designed to participate in rising markets while placing an emphasis on minimizing drawdown and preserving capital during market declines. FFCM’s model ranks sector attractiveness based on factors such as, valuation, momentum and capitalization.
“The addition of the team at FFCM provides AGF with a solid platform from which to develop investment solutions designed to manage volatility and deliver more consistent, repeatable results,” adds Kevin McCreadie, president and chief investment officer of Toronto-base AGF Investments Inc., in the statement. “Furthermore, this acquisition will allow us to grow our U.S. distribution capabilities.”