CANADA/US - The Canadian Imperial Bank of Commerce (CIBC) has acquired a 41% stake in US asset management firm American Century Investments in a move to increase its international asset management offerings.
American Century has $112bn in assets under management. CIBC will acquire the minority stake from JP Morgan Chase & Co for $848m in an all-cash deal. The Stowers Institute for Medical Research is the majority owner of American Century.
"This investment will build on our strong franchise in Canada and provide CIBC an additional platform for growth in asset management internationally," said CIBC president and chief executive officer Gerry McCaughey. "It is aligned with our risk appetite and provides attractive fee-based income, geographic diversification and revenue synergies within our asset management business."
American Century serves both the institutional and retail market in the US and has made moves to grow in the UK. Fund analyst Morningstar ranks the firm third among its peer group. Some 65% of its assets are held in four or five-star funds, while 84% of its funds are ranked in the first or second quartile.
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