Toronto-based independent financial services company Rockwater Capital Corp. has sold Rockwater Asset Management Inc. and certain RAMI private-client assets under management to Barometer Capital Management Inc.

BCM, also based in Toronto, is a recently formed entity owned by the principals of the Disciplined Leadership Group, a division of RAMI. As of September, RAMI provided portfolio advice on approximately $940 million in AUM for mutual fund and wrap accounts, private-client portfolios and institutional investors.

Approximately $560 million in mutual fund and wrap account AUM will remain within the Rockwater group of companies. And BCM, now operating RAMI under the new name Barometer Capital Inc. , continues to manage three mutual funds for Rockwater.

“[BCM’s principals] wanted to become independent and privately owned again, but they wanted to continue our partnership, our relationship — and that made the most sense,” says Debbie Yuen, vice president of communications at Rockwater Capital.

BCM, which has always had its own clients outside of Rockwater, wanted to focus on its private-client AUM and institutional management, but still maintain its mutual fund and wrap account business with Rockwater, says Yuen.

As part of the agreement, BCM will provide portfolio advice to all three Disciplined Leadership funds for Lakeview Asset Management Inc. , Rockwater’s new mutual fund platform launched in September. For the next five years, BCI will act as the exclusive portfolio advisor of Disciplined Leadership funds, which have $469 million in AUM.

The new mutual fund platform is a way for Rockwater to participate more actively in the mutual fund arena, Yuen says.

“We wanted to expand beyond the Disciplined Leadership group. We wanted to offer more mutual funds and more options for investors,” she explains. “Lakeview Funds offers the three Disciplined Leadership funds and now offers four KBSH [Capital Management Inc.] funds under the Lakeview banner.” IE