CMA Holdings, a subsidiary of the Canadian Medical Association on Monday announced a definitive agreement to purchase a majority position in Toronto-based investment management firm Howson Tattersall Investment Counsel Ltd.

Although the deal is subject to regulatory approval and Saxon mutual fund unitholder notification, it is expected to occur effective August 31.

Howson Tattersall will be merged with Lancet Asset Management Inc, the institutional money management subsidiary of CMA Holdings.

“We firmly believe the addition of Howson Tattersall to the CMA Holdings group ensures excellent long-term growth potential for our entire organization and supports our core strategy of delivering significant value to Canadian physicians and their families,” said Robert Hewett, president and CEO of CMA Holdings, in a news release.

“We’re very pleased that Rick Howson and Bob Tattersall have chosen to retain significant ownership and take leadership roles in the new organization. As a result, Howson Tattersall Investment Management will continue to be one of Canada’s most highly regarded institutional and individual asset management firms.”

Rick Howson will assume the role of chief investment officer while Bob Tattersall will become executive vice president. The merged firm will invest assets under management of $6 billion and operate under the Howson Tattersall name. Howson and Tattersall will also remain as portfolio managers for the Saxon Mutual Funds.

“This is truly an ideal situation. We’re pleased to have found a partner in CMA Holdings with whom we share a vision for the future, a fit for our culture and, most importantly, a commitment to the long-term success of our clientele,” said Tattersall.

Howson said, “We have been seeking a long-term succession model that will sustain what Bob and I are building — and this promises the necessary stability and strength we’ve been looking for on behalf of our private and institutional clients as well as Saxon Fund unitholders.

For clients, it will be business as usual at the Howson Tattersall-managed Saxon Mutual Funds and at MD Management, the financial planning group of CMA Holdings. Saxon Funds continue as value-oriented, no-load retail funds sold directly or through broker dealers, while the no-load MD mutual funds will continue to be offered exclusively to members of the CMA and their families.

“We intend to further strengthen our now expanded organization by providing separately dedicated resources to the Saxon Mutual Funds and to Howson Tattersall to enhance their profile in the marketplace,” said Hewett.