Macquarie Investment Management has agreed to acquire the assets related to the mutual fund management business of Toronto-based Foresters Investment Management Company Inc, the investment adviser of the First Investors funds. The agreement represents about $12.3 billion in assets under management. The transaction is expected to close in the fourth quarter of 2019.
PHILADELPHIA, April 9, 2019 — Macquarie Investment Management today announced it has entered into a definitive agreement to purchase the assets related to the mutual fund management business of Foresters Investment Management Company, Inc., the investment adviser of the First Investors funds, with approximately $US12.3 billion in assets under management.* The acquired assets will become part of the Delaware Funds® by Macquarie family of funds. In addition, Macquarie Investment Management has been chosen by Foresters to manage a portion of Foresters’ general account supporting its life insurance business. The transaction is expected to close in the fourth quarter of calendar year 2019.
“The First Investors funds business aligns with our mission to provide clients with investment capabilities across multiple strategies,” said Shawn Lytle, global head of Macquarie Investment Management and president of Delaware Funds by Macquarie. “We look forward to serving our new investors by delivering strong investment performance along with a broad and deep range of strategies across asset classes. We are delighted that Foresters has also selected us as manager of a portion of the Foresters general account.”
Separate from this transaction, Cetera® Financial Group, Inc. has announced its intention to purchase select assets of the US brokerage and advisory business of Foresters Financial Services. Macquarie will also support the Foresters advisors joining Cetera through its investment management offering, Delaware Funds by Macquarie.
Macquarie Investment Management’s acquisition transaction is subject to customary closing conditions, including the approval of the First Investors mutual fund shareholders. “In seeking a firm to acquire and manage our mutual fund assets for US investors, Macquarie Investment Management stood out as a leader that would be able to support our clients with its global platform and its commitment to investment excellence,” said Jim Boyle, president and chief executive officer of Foresters Financial. “The Delaware Funds by Macquarie stand for high conviction, long-term strategies, and we are confident we’ve found the right partner as we exit this area of our business.”
*Assets under management as of March 31, 2019.
About Macquarie Investment Management Macquarie Investment Management is a global asset manager with offices throughout the United States, Europe, Asia, and Australia. As active managers, we prioritize autonomy and accountability at the team level in pursuit of opportunities that matter for clients. Our conviction-based, long-term approach has led institutional and individual clients to entrust us to manage more than $US234.5 billion in assets as of Dec. 31, 2018. In the US, retail investors recognize our Delaware Funds by Macquarie as one of the longest standing mutual fund families, with more than 75 years in existence. Macquarie Investment Management is a division of Macquarie Asset Management, a global asset manager with more than $US374.8 billion in assets under management as of Dec. 31, 2018.