American Century manages approximately $111bn in assets for a diversified mix of institutional, intermediary and retail investor clients.
CIBC holds 10.1% of American Century’s voting rights and appoints two representatives to its 10-person board.
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The transaction is expected to contribute approximately 15 cents per share to CIBC’s earnings in 2012 on a cash basis.
CIBC president and CEO Gerry McCaughey said their investment in American Century complements their strong Canadian asset management franchise and provides a platform for CIBC’s growth internationally. It also underlines their confidence in the long-term potential of the asset management business, which has attractive demographic and risk characteristics.
American Century Investments president and CEO Jonathan Thomas added CIBC’s distribution strength and strategic commitment to American Century Investments will help their firm as they execute their growth through diversification strategy.
