LOGiQ Asset Management debuts with intentions to pursue aggressive growth

The merger of asset managers Aston Hill and Front Street Capital, both based in Toronto, was first announced in September. The new firm, whose name refers to “logical, intelligent investing,” according to Canavan, has about $3.1 billion in assets under management. Its shares, which have been trading under the ticker symbol AHF, will trade under the ticker symbol LGQ on the Toronto Stock Exchange beginning Dec. 14.

LOGiQ is realigning its product lineup under three broad “verticals”: specialized equities, such as infrastucture, tactical, and resource funds; specialized yield investments; and alternative investments, Canavan says. The firm intends to differentiate itself from its large bank-owned and independent asset-management rivals by providing financial advisors with unique products meant to complement core investment recommendations.

“The real alpha-capture [opportunity] is in using these unique strategies as part of your overall portfolio construction,” Canavan says. “Most of the top retail advisors whom I’ve spoken with — this is what they want, this is what they need.”

The merger between Aston Hill and Front Street will also allow for opportunities to achieve cost savings through consolidation and efficiencies of scale, he says. The firm will also leverage technology to enhance portfolio management and product development capability as well as enhance operational efficiencies. In fact, Canavan has been active in the fintech venture capital space in recent years, most notably via an investment in Toronto-based robo-advisor Wealthsimple Inc.

“We’re going to pull apart every process and procedure in the firm to make us as optimized as possible,” he says.

In addition to growing organically, LOGiQ will be looking to expand via acquisition as well. “We have two or three companies that we’re speaking with: one of them is on the institutional side, a couple are on the wholesale side, and we’re even looking at a private-client business,” says Canavan, who expects that LOGiQ will expand its product offering into those lines of businesses in the coming years.

The new firm is jointly owned by Front Street Capital and partners, which will have about a 43% stake in the new firm; Canavan, who will hold about 12% stake in the company; and Aston Hill shareholders, who will own the remaining shares.

James Werry, the CEO of Aston Hill since February, will retire. Nevin Markwart, president and CEO of Front Street Capital, will remain with the firm and have a seat on its board of directors, Canavan says.

LOGiQ’s headquarters will be located at Aston Hill’s offices at 77 King St. W., while the company will sublet Front Street Capital’s offices at 33 Yonge St., Canavan says.

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