Dundee Wealth Management Inc. has completed its acquisition of StrategicNova Inc. effective October 2. As a result, Dynamic Mutual Funds’ assets under management will increase by more than 30% to $8.3 billion.

Dundee Wealth has placed 100% of its operations into a new private holding company, DWM Inc., which is 81.7% owned by Dundee Wealth and 18.3% owned by CDP Capital – Financial Services. DWM Inc. now owns 100% of the principal operating businesses, namely: Dynamic Mutual Funds Ltd., DynamicNova Inc. (formerly StrategicNova Inc.), Dundee Securities Corporation, Dundee Private Investors Inc. and Dundee Insurance Agency Ltd.

CDP Capital – Financial Services, a subsidiary of the Caisse de depot et placement du Quebec, received 12,758,600 common shares of DWM Inc. and has an option to acquire an additional 1,000,000 shares at $10 per share until October 1, 2003. In addition to the StrategicNova assets, CDP Capital – Financial Services exchanged $31 million of loans to equity and added $15 million in cash to complete the transaction. Dundee Wealth owns 56,969,001 common shares of DWM Inc.

Dundee’s partnership with CDP Capital – Financial Services sets the next stage for Dundee Wealth’s expansion of its distribution capabilities in Quebec. While Dynamic’s roots are based in Montreal, Dundee’s advisor base is significantly skewed to the Ontario market. “Our business thrust now includes the build out of our advisor base in Quebec similar to that which we have been able to achieve in Ontario. We are looking at plans to significantly increase our advisor base in Quebec” said Jean Panneton, president of Dundee Securities Corp., Dundee Wealth’s full service securities dealer.

The integration process will initially begin with the offering of immediate free switchability from StrategicNova funds into certain chosen Dynamic funds.

Following a scheduled system merger by summer 2003, investors will have full switchability between the entire product line. At such time, Dynamic expects to rationalize the fund line-up by merging funds with similar mandates. “Fund consolidation will result in fewer funds, lower operating expenses and operating synergies while continuing to provide a broad product selection with top-quality investment managers” said David Goodman, president and CEO of Dynamic Mutual Funds.