Toronto-based Pro-Financial Asset Management Inc. has agreed to sell to Burlington, Ont.-based Kingship Capital Corp. all the investment management agreements in nine Pro-Financial index funds.

Pro-Financial announced the proposed sale last week. Financial terms were not disclosed.

The proposed sale will result in a change of portfolio manager and investment fund manager for the following funds:

> Pro FTSE RAFI Canadian Index Fund;

> Pro FTSE RAFI US Index Fund;

>Pro FTSE RAFI Global Index Fund;

> Pro FTSE RAFI Hong Kong China Index Fund;

> Pro Money Market Fund;

> Pro FTSE RAFI Emerging Markets Index Fund;

> Pro FTSE NA Dividend Index Fund;

> Pro Fundamental Balanced Index Fund; and

> Pro Fundamental Bond Index Fund.

Pro-Financial says the independent review committee of the funds will review the change of manager transaction and provide its recommendations. The sale is also subject to review by the Ontario Securities Commission and to unitholder approval.

Back in May, Pro-Financial said it was considering several proposals from Canadian asset managers, and the OSC expressed concerns that the firm was deficient of capital. (See Investment Executive, OSC extends temporary order against Pro-Financial, May 29, 2013.)

It is expected that the sale will not be implemented earlier than December 15. Upon completion of transaction, the portfolios of the funds will be managed by Kingship Capital.