Hub to buy Sun Life mutual fund operation

Broker consolidator Hub International (TSX, NYSE: HBG) has signed a letter of intent to purchase Sun Life Financial Advisory Services Inc. which sells mutual funds in Canada. These operations would be merged with Hub’s existing mutual fund arm, Hub Capital Inc., coinciding with the company’s life and financial services operation, Hub Financial Inc.
Sun Life Financial Advisory Services has over $350 million in assets under management, selling to both businesses and individuals. Included in the transaction will be mutual fund licenses for Sun Life Financial Advisory’s 158 representatives nationwide.
Through the deal, Hub Financial will become a preferred distributor of Sun Life Financial life products.
“Bringing the Sun Life Financial Advisory representatives into our fold measurably improves our reach into the financial services arena in Canada as a mutual fund dealer and broadens our ability to provide financial services to our clients,” says Hub Financial president Terri DiFlorio.
No terms have been disclosed and the deal, subject to regulatory approval, is expected to close January 1, 2003.