Foresters announces sale of $12 billion mutual funds business to turn its focus toward life insurance
Toronto, ON (Apr. 9, 2019) – Foresters Financial has entered into definitive agreements to sell assets related to its U.S. asset management business, including First Investors mutual funds, to Macquarie Investment Management (“Macquarie”), the investment manager of the Delaware Funds® by Macquarie family of funds, and its U.S. broker dealer and advisory business to Cetera Financial Group (“Cetera”).
Foresters Financial will continue to focus on and invest in its core life insurance business. Foresters is a purpose-driven organization that concentrates on mass- and middle-market families, which are underserved by financial institutions in the U.S., as well as those in Canada and the U.K. – Foresters’ key geographies. In the U.S. alone, these under-insured markets represent approximately 39 million households.
Foresters expects to have ongoing relationships with both Macquarie and Cetera– with Macquarie managing segments of Foresters’ general account and a distribution relationship with Cetera.
Jim Boyle, President and Chief Executive Officer of Foresters Financial said: “With the announcement of today’s transactions, we will focus on innovation, new product development and the growth of our brand and market share in our core life insurance business. These transactions will allow Foresters to continue to deliver on its Purpose of enriching the lives of its members and their communities. Macquarie and Cetera are aligned with our mission to provide world-class services to clients and will leverage their extensive platforms and commitment to investment excellence to continue supporting those clients.”
“We are pleased to enter into this agreement to serve the Foresters advisors and the First Investors mutual fund shareholders,” said Shawn Lytle, global head of Macquarie Investment Management and president of Delaware Funds® by Macquarie. “Our investment expertise, global platform, and the rich history of the Delaware Funds by Macquarie mutual fund family, position us well to be strong stewards of these assets.”
Adam Antoniades, President of Cetera Financial Group said, “We welcome the brokerage and advisory business of Foresters as a new division of Cetera. We look forward to working with the employees of approximately 40 branch offices, as well as introducing their advisors to new technology and services that can help them manage and grow their businesses. The business has an outstanding new entrants program we plan to leverage so that together, we can continue to help more clients achieve financial well-being through an Advice-Centric Experience®.”
These transactions, subject to regulatory and First Investors fund shareholder approvals, are expected to close by the end of 2019. Transaction terms were not disclosed.
Foresters Financial was advised on these transactions by Oppenheimer & Co. Inc.
About Foresters Financial
Since 1874, Foresters Financial has been providing socially responsible financial services to individuals and families. Foresters Financial includes The Independent Order of Foresters, the oldest non-denominational fraternal benefit society. Foresters is a purpose-driven organization that exists to enrich family and community well-being and offers insurance products to over three million members and clients in Canada, the US and the U.K. For 18 straight years, The Independent Order of Foresters has received an “A” (Excellent) rating from A.M. Best.
For more information, visit foresters.com.
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.
About Cetera Financial Group
Cetera Financial Group (“Cetera”) is a leading network of independent firms empowering the delivery of professional financial advice to individuals, families and company retirement plans across the country through trusted financial advisors and financial institutions. Cetera is the second-largest independent financial advisor network in the nation by number of advisors, as well as a leading service provider to the investment programs of banks and credit unions.
Through its multiple distinct firms, Cetera offers independent and institutions-based advisors the benefits of a large, established broker-dealer and registered investment adviser, while serving advisors and institutions in a way that is customized to their needs and aspirations. Advisor support resources offered through Cetera include award-winning wealth management and advisory platforms, comprehensive broker-dealer and registered investment adviser services, practice management support and innovative technology. For more information, visit cetera.com.
1. The A.M. Best rating assigned on August 2, 2018 reflects the overall strength and claims-paying ability of The Independent Order of Foresters (IOF) but does not apply to the performance of any non-IOF issued products. An “A” (Excellent) rating is assigned to companies that have a strong ability to meet their ongoing obligations to policyholders and have, on balance, excellent balance sheet strength, operating performance and business profile when compared to the standards established by A.M. Best Company. A.M. Best assigns ratings from A++ to F, A++ and A+ being superior ratings and A and A- being excellent ratings. Visit ambest.com for our latest rating.
SOURCE: Foresters FinancialTags: Acquisition, Foresters Financial