GMP Capital Trust today announced a strategic new initiative today with the launch of an asset management business.

As part of this initiative, GMP Investment Management L.P. has been established and regulatory approvals as an investment counsel and portfolio manager have been received.

“GMP Investment Management is a logical extension of our current operations and consistent with our stated goals of increasing our assets under management businesses,” says Kevin Sullivan, Chief Executive Officer of GMP Capital Trust.

GMP Investment Management plans to launch its first fund, GMP Diversified Alpha Fund, focused on multi-discipline strategies, in early 2008.

It is targeting approximately $100 million in assets under management in its first fund by the end of 2008, with further offerings aimed at both high net worth individuals and institutional investors in Canada expected thereafter.

GMP is committing $20 million of its own capital to support the launch of the fund and the managing partners of the fund will also be participating.

Jason Marks, a veteran financial industry executive with extensive trading, structured product and risk management experience, will lead this new business initiative as a principal partner.

“The objective of the GMP Diversified Alpha Fund is to deliver premium risk-adjusted returns throughout all business cycles through a combination of investment strategy diversity, a disciplined risk management approach, a focus on capital preservation and an exhaustive analysis of investments and strategies,” says Marks.

Michael Wekerle, vice chairman of institutional trading at GMP Securities, will also act as a partner in this new initiative providing advice and oversight to the business while continuing to provide direction and leadership on the trading floor of GMP Securities.

Timothy Lazaris, previously a financial services research analyst at GMP Securities, will also be joining this new initiative as a partner focusing on research and analytics.