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iA financial Group completes acquisition of HollisWealth


Mathieu Carbasse

8 August 2017 13:30

iA financial Group has concluded the acquisition of HollisWealth, the property of Scotiabank. This acquisition was effective after the close of business on Friday 4 August 2017. The agreement to acquire HollisWealth had been announced on 5 December 2016.

HollisWealth offers a diverse range of investment services and wealth management to individuals, families and businesses from 300 offices across Canada. By the acquisition of HollisWealth, iA financial Group is becoming one of the largest consulting firms, non-bank wealth management in Canada, with assets under administration of nearly $ 80 billion.

For its part, HollisWealth was part of the acquisition of dundeewealth by the Bank of Scotia in 2011, which also included Dynamic Fund, a management firm, canadian investment the most famous. This entity is not part of the announced transaction and will remain a member of the Scotia Bank.

Further penetrate the canadian West

In an exclusive interview to the Journal of insurance last February, Carl Mustos, president of’iA Placements Clarington, believed that the transaction would increase the national presence of iA financial Group wealth management, in addition to leveling regional disparities. According to him, this acquisition should allow the ai financial Group to have a more balanced presence across Canada in both of its networks : mutual funds and securities.

«We pénétrerons more Western canadian securities full year. We were strong at the national level on the side of the mutual fund representatives (advisors, mutual funds). Our presence will now be better balanced between the two networks, across Canada. iA financial Group has over advisers in mutual funds, then that HollisWealth has three dealers for a counselor in mutual funds, which is about 600 compared to 200 «, illustrated in particular by Mr. Mustos.

Finance 26th acquisition

The insurer of Québec has funded the purchase of HollisWealth in the middle of its liquidity. According to the forecast, the transaction is expected to affect the solvency ratio of the group of eight points, to lower it to 199 %. ai Group financial will also fund, through the issuance of common shares. Underwriter, TD Securities needed to complete the purchase of 2.5 million common shares of iA financial Group at a price of 55.65 per $ each, not later than the 14th of December, for a sum of 139 million dollars (M$).

To note that from 2000 to today, iA financial Group has completed 25 acquisitions in wealth management.

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