Phillips, Hager & North Investment Management Ltd. has signed an agreement to acquire BonaVista Asset Management Ltd. PH&N says BonaVista will continue to operate as a distinct company and will continue to provide service directly to its clients.

The agreement allows PH&N to restructure its U.S. equity research resources. Carl Lytollis, manager of BonaVista U.S. Equity Fund, has assumed the position of vp and head of U.S. equity research at PH&N. He will immediately assume responsibility for U.S. equity assets under management at PH&N, and will continue to manage U.S. equities for BonaVista.

Lytollis employs an investment style complementary to that which PH&N employs in the management of North American equities. This approach has been applied in to BonaVista U.S. Equity Fund since 1994 and has produced first-quartile performance over the long term.

“We are very pleased to establish this relationship with BonaVista,” says John Montalbano, president of PH&N. “This development enhances PH&N’s capabilities in the area of U.S. equity management. Moreover, our relationship with BonaVista broadens PH&N’s scope in the investment management marketplace.”

“This relationship will enable BonaVista to draw on PH&N’s depth of resources, thereby allowing us to put greater focus on serving our clients over the long term,” says Terry Bacinello, President of BonaVista.

The changes are subject to regulatory approval.

Established in 1964, Vancouver-based PH&N manages over $53 billion in investments of behalf of institutions and individuals across Canada.

BonaVista was established in 1994. Located in Toronto, it serves clients across the country in the pension, foundation and private client markets both directly and through alliances with other institutions.