Fiera Capital agreed to take over management of City National Rochdale Emerging Markets Fund, a $1.7 billion mutual fund that invests primarily in Asian emerging markets equities, from City National Rochdale, a subsidiary of City National Bank.
Fiera agreed to pay $12 million in cash upon closing, as well as a possible additional $12 million of revenue-sharing payments payable during the five-year post-closing period, and additional payments structured as revenue-sharing payments linked to realized revenue, payable during the 10-year post-closing period.
As part of the agreement, the transition of the fund's management and ownership will occur in two stages. In the first stage, completed Friday, Fiera Capital will serve as a subadviser to the fund. Members of the existing City National Rochdale emerging markets investment team, led by Anindya Chatterjee, have now become employees of Fiera Capital, confirmed Fiera spokeswoman Sarah Braunstein.
In the second stage, the fund and its securities would be transferred to a new Fiera Capital branded fund, which is expected to occur in early 2018, subject to fund shareholder approval.
The fund's investment objective and portfolio management team are not expected to change.
Fiera Capital, the U.S. asset management arm of Fiera Capital Corp., managed $27 billion in assets as of Sept. 30.
