CI Financial Corp. (TSX: CIX) will acquire the Canadian mutual funds business of The Hartford Financial Services Group, Inc. (NYSE: HIG), the companies announced Thursday.

Under the agreement, CI will purchase Hartford Investments Canada Corp., manager of 18 mutual funds with approximately $1.75 billion in assets.

The deal is expected to close in December, subject to approval of Canadian securities regulatory authorities. The terms were not disclosed.

“We are pleased to acquire Hartford’s high-quality suite of funds,” says Stephen MacPhail, CI president and CEO. “Hartford Investments has been one of Canada’s fastest-growing mutual fund companies over the past five years, having developed a strong lineup of portfolio managers and excellent relationships with dealers and advisors.”

David Levenson, president of The Hartford’s Wealth Management business, adds, “We believe Hartford Investments Canada will continue to thrive with a new Canadian parent. At the same time, this divestiture will allow The Hartford to focus our energies and investment on core U.S. operations while generating additional capital flexibility and shareholder value.”

MacPhail says the transaction is part of CI’s long-term strategy to increase the scale of its asset management business through organic growth and acquisitions and enhance the diversity of its distribution channels. The addition of Hartford’s Canadian mutual funds will increase CI’s retail assets under management to approximately $68.4 billion.

IE