DundeeWealth Inc. announced today that it has completed an agreement transferring 90% of its New York-based subsidiary DFG Investment Advisors (DFG) to Kym Anthony, chairman of DFG, and a small group of DFG employees.

DFG was established early last year as a structured credit asset management company focused initially on assisting the new Dundee Bank of Canada with the development of an investment portfolio largely weighted in investment grade collateralized loan obligations (CLOs). Dundee bank was sold to The Bank of Nova Scotia on Sept. 28, 2007.

DundeeWealth says structured credit products were among several investment initiatives pursued as a result of the firm’s acquisition of K L Nova Inc. in 2005 and the hiring of its controlling shareholder and founder, Kym Anthony. Anthony resigned from DundeeWealth late last year and is a participant in today’s transaction.

In addition, 480,000 common shares of DundeeWealth and 360,000 unvested options to purchase common shares of DundeeWealth, issued as part of the K L Nova acquisition but held in escrow to satisfy certain vesting conditions, are cancelled.

Going forward, DFG, 10% owned by Toronto-based DundeeWealth, will manage structured credit assets ranging across the spectrum, including approximately $90.7 million in high quality collateral loan obligations managed for DundeeWealth.