Toronto-based CANNEX, an independent provider of data and information services to the financial services industry in the U.S. and Canada, Monday announced it has entered into an agreement to acquire The QWeMA (Quantitative Wealth Management Analytics) Group Inc., a developer of unique intellectual property and educational software for the financial services and retirement industry.
QWeMA Group was founded by York University Professor Moshe Milevsky in 2005 and has been incubated at the Fields Institute for Research in Mathematical Sciences in Toronto. As part of this agreement, Milevsky will join the CANNEX board and oversee scientific research activities. All QWeMA employees and business activity will relocate to CANNEX headquarters.
CANNEX will form a new business unit dedicated to original research and development as well as the continued maintenance and servicing of QWeMA’s existing product allocation and analytical software tools. The new business unit will retain the name, QWeMA, and will be led by Faisal Habib, who previously served as COO of QWeMA.
QWeMA’s expertise will contribute to the launch of three CANNEX initiatives to benefit the company’s main constituencies: product manufacturers, advisors/distributors, and consumers/media.
Product allocation services will provide models for the allocation of insurance, annuity and investment products in order to maintain sustainable cash flows for retirement income. These tools will provide guidance on optimal spending rates and annuity product choices.
Valuation services will provide models and consulting to help answer questions such as: “What is my annuity policy worth?” or “Should I turn on my annuity’s living benefit?”
Historical data and payout indices will support annuity research, product development and personal finance reporting and education.
QWeMA currently provides software and consulting services to a wide range of participants in the financial services industry, including banks, insurance companies, financial planning software vendors and individual investment advisors, which CANNEX also serves. Both specialize and are known for helping the retirement income industry.
“CANNEX has been working closely with Moshe Milevsky for more than 17 years and was QWeMA’s first client,” said Lowell Aronoff, CEO of CANNEX, in a release.
“I am thrilled to be able to place QWeMA Group within CANNEX and welcome the opportunity to partner with Lowell Aronoff and Alex Melvin, president of CANNEX, both of whom I have known and respected for a long time. The CANNEX infrastructure provides QWeMA with the ability to grow its research, software tools and consulting services to a new level,” said Milevsky.