Canadian asset manager Fiera Capital Corp's US division is to acquire City National Rochdale’s emerging markets business for $12 million, in a deal that will see it take on the $1.7 billion City National Rochdale Emerging Markets fund.
The US division, which currently oversees $23 billion in assets, is set to complete the cash acquisition in the first quarter of 2018. Its Canadian parent has over $100 billion under management.
As part of the transaction Fiera has hired City National Rochdale’s emerging markets team, which includes portfolio manager Citywire + rated Anindya Chatterjee, who runs the City National Rochdale Emerging Markets fund.
Fiera Capital will be listed as a subadvisor on the fund until the deal is completed, at which point the fund will be rebranded with Fiera Capital's name.
The City National Rochdale Emerging Markets fund is ranked second out of 185 Emerging Markets funds by Citywire for three-year total returns to the end of October. Over that time the fund returned 35.7% compared to the average Emerging Markets fund, which is up 14.8%.
Fiera Capital has a total of five mutual funds available in the US, including the $147.1 million Fiera Capital International Equity fund and the $11.5 million Fiera Capital Global Equity Focused fund.
City National Rochdale now has 10 funds in total. After the transaction its only equity funds will be the domestically-geared $259.8 million City National Rochdale Dividend & Income fund and the $274.6 million City National Rochdale US Core Equity fund, with remainder fixed income or alternative offerings.
Beverly Hills-based City National Rochdale is the $35.2 billion high-net-worth asset management business of City National Bank, which is a $48.7 billion subsidiary of Royal Bank of Canada.