CIBC to Purchase 41 Percent Stake in American Century Investments

Share Article

American Century Investments announced today that a 41 percent economic interest in the company currently held by JPMorgan Chase & Co. will be acquired by CIBC a leading Canadian financial institution, for a purchase price of approximately USD $848 million, based on a definitive agreement.

American Century Investments logo

We’re excited to welcome CIBC as a strategic partner and stakeholder in our company.

American Century Investments announced today that a 41 percent economic interest in the company currently held by JPMorgan Chase & Co. will be acquired by CIBC a leading Canadian financial institution, for a purchase price of approximately USD $848 million, based on a definitive agreement. The transaction is expected to close within the next 60-to-90 days, pending approval by U.S. and Canadian regulatory authorities.

“We’re excited to welcome CIBC as a strategic partner and stakeholder in our company,” said Jonathan Thomas, American Century Investments president and chief executive officer. “CIBC’s large footprint in Canada and presence in other parts of the world will help in the execution of our growth through diversification strategy, of which a key component is bringing our investment management expertise to non-U.S. clients. Robust growth and continued financial success is in the best interests of our clients, employees and stakeholders in the firm.”

The deal allows CIBC to access and leverage American Century Investments’ asset management capabilities while helping the bank further diversify its business interests by geography, giving the company a strong presence in the U.S. investment management market. For American Century Investments, the transaction provides the Kansas City-based firm with a strategic partner whose prominence in Canada will help support its growth initiative to broaden non-U.S. distribution of the firm’s products and services. The companies also plan to explore other opportunities to grow each other’s businesses in mutually beneficial ways, while continuing to place the interests of clients and investors first.

“This investment will build on our strong franchise in Canada and provide CIBC an additional platform for growth in asset management internationally,” said CIBC President and CEO Gerry McCaughey. “It is aligned with our risk appetite and provides attractive fee-based income, geographic diversification and revenue synergies within our asset management business.”

American Century Investments’ business partnership with CIBC brings together a leading U.S. investment firm managing approximately $112 billion* in assets and one of Canada’s top financial institutions with more than $USD 400 billion in assets as of April 30, 2011. Based in Toronto, CIBC employs nearly 42,000 people and provides a full range of retail and wholesale banking services to almost 11 million retail and wholesale banking clients through 1,080 branches and offices in Canada, the United States and around the world.

Upon the close of the transaction, CIBC will have two representatives on American Century Investments’ 10-person board. In addition to its 41 percent economic interest, CIBC will have a 10.1 percent voting interest.

JPMorgan Chase has held a non-controlling equity interest in American Century Investments since January, 1998, when it purchased a 45 percent stake. The transaction provided American Century Investments founder James Stowers Jr. with the liquidity necessary to establish and endow the Stowers Institute for Medical Research, a biomedical research organization committed to finding cures for cancer and other gene-based diseases.

The companies will hold an analyst/investor/media call to discuss this announcement today Friday, July 15 at 8:30 a.m. (EST). A live audiocast will be available at http://www.cibc.com/ca/about.html. Participants also can listen to the conference call (416-695-6622) in Toronto, or toll-free (1-800-766-6630) throughout the rest of North America. A telephone replay will be available (905-694-9451 or 1-800-408-3053, passcode 5043534#) until midnight (EST) on Dec. 12, 2011.

About CIBC
CIBC is a leading Canadian-based global financial institution. Through its two main operating groups, CIBC Retail Markets and Wholesale Banking, CIBC provides a full range of financial products and services to almost 11 million individual, small business, commercial, corporate and institutional clients in Canada and around the world. CIBC is among the best capitalized banks in the world with Tier 1 and Tangible Common Equity ratios of 14.7% and 10.6%, at April 30, 2011. CIBC Wealth Management provides a comprehensive suite of wealth-building services through an extensive distribution network that includes CIBC Private Wealth Management, CIBC Wood Gundy and CIBC Investor’s Edge, to a broad range of self-directed investors, high net worth individuals, and institutional clients.

CIBC Asset Management’s industry-leading investment solutions include the CIBC family of managed portfolio solutions and two mutual fund families – CIBC and Renaissance Investments, while CIBC Global Asset Management provides global money management services for institutional, retail and high net worth clients.

About American Century Investments
American Century Investments is a leading privately held investment management firm, committed to delivering superior investment performance and building long-term client relationships since 1958. Serving investment professionals, institutions, corporations and individual investors, American Century Investments offers a variety of actively managed investment disciplines through an array of products including mutual funds, institutional separate accounts, commingled trusts and sub-advisory accounts. The company's 1,300 employees serve clients from offices in New York; London; Hong Kong; Mountain View, Calif. and Kansas City, Mo. James E. Stowers Jr. is founder of the company, Jonathan S. Thomas is president and chief executive officer and Enrique Chang is chief investment officer. Through its ownership structure, more than 40 percent of American Century Investments' profits support research to help find cures for genetically-based diseases including cancer, diabetes and dementia.

Before investing, carefully consider a fund’s investment objectives, risks, charges and expenses. Go to americancentury.com for a prospectus or summary prospectus containing this and other information. Read it carefully.

*Assets as of June 30, 2011

American Century Investment Services, Inc., Distributor
©2011 American Century Proprietary Holdings, Inc.

# # #

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Laura Kouri

Chris Doyle

913 530-0510
Email >
Visit website