IGM Financial, a subsidiary of Mackenzie Financial, has signed an agreement to acquire subsidiary GLC Asset Management Group, a subsidiary of The Canada Life Assurance Company,  for CAD175m ($132m).

As part of the deal, Canadian Life will acquire mutual fund management contracts related to private label Quadrus Group of Funds (QGOF) from Makenzie for CAD30m ($22.6m).

The deal is subject to regulatory approval and it could be closed in the fourth quarter of this year.

With about 50 years of history, GLC offers investment advisory services to a range of mutual funds and individual and group segregated funds, distributed through its parent company Canada Life.

It has nearly CAD$36bn ($27.1bn) in assets under management, which will be transferred to Mackenzie.

Mackenzie Investments president and CEO Barry McInerney said: “As a result of this expanded relationship, we’ll be in a position to offer more diverse and unique products and solutions to both Mackenzie and Canada Life clients, building upon our multi-boutique and multi-asset class structure and approach.

“This agreement also solidifies Mackenzie’s presence in the very important and growing group retirement market, where Canada Life is a leading provider and offers employee benefits and retirement services to millions of Canadians.”

Canada Life is planning to establish its own fund management company

Canada Life is also planning to establish its own fund management company, Canada Life Investment Management Limited (CLIML).

Subject to obtaining all necessary registrations and other regulatory approvals, it could begin operations in the last quarter of this year.

CLIML will assume the fund management responsibilities for the Quadrus Group of Funds and other Canada Life branded investment funds next year.

IGM Financial president and CEO Jeff Carney said: “We are excited to further expand our relationship with our sister company Canada Life through this agreement.

“GLC brings complementary capabilities that will strengthen Mackenzie’s ability to deliver the best investment solutions to advisors and investors across all key distribution channels.”