YMG Capital Management Inc. has completed the sale of its mutual fund management and distribution business to Mavrix Funds Management Inc.

The sale was conducted by assigning the material contracts of the YMG Mutual Funds (excluding the YMG International Fund which is to be terminated on August 31) and the YMG Emerging Companies Fund to Mavrix. The proceeds from the sale were approximately $3.4 million, $500,000 of which was in the form of a promissory note and the balance in cash.

The funds involved in the transaction are now known as: Mavrix American Growth Fund; Mavrix Balanced Fund; Mavrix Bond Fund; Mavrix Canadian Value Fund; Mavrix Enterprise Fund; Mavrix Growth Fund; Mavrix Income Fund; Mavrix Money Market Fund; Mavrix Strategic Fixed Income Fund; Mavrix Sustainable Development Fund; and Mavrix Emerging Companies Fund.

As at August 21, the aggregate net assets of these funds was approximately $62 million.

YMG and Mavrix also entered into a portfolio advisory agreement that will see YMG act as the investment advisor to the Mavrix American Growth Fund, the Mavrix Bond Fund, the Mavrix Money Market Fund and the Mavrix Strategic Fixed Income Fund.

Mavrix Funds Management Inc. is a new entrant to the Canadian mutual fund industry. Its principal shareholders are Malvin Spooner, a former YMG vice president, and Trilon Bancorp. Ten former YMG employees who were involved in the day-to-day operations of the funds have also joined Mavrix.