Claymore founder launches Canada asset manager

Thu Jan 10, 2013 4:27pm EST
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* Seif returns to scene after a few months off to think

* Firm committed to low fees "across the board"

* First fund launched offers ownership stake

By Andrea Hopkins

TORONTO, Jan 10 (Reuters) - Som Seif, founder and former president of Claymore Investments Inc, has launched a Canadian asset management firm aimed at low-fee investments for institutional and retail investors, unveiling its first fund on Thursday.

The new firm, Toronto-based Purpose Investments, promises to use rules-based investment management to keep fees low and risk in check, a semi-passive management structure that hopes to appeal to investors who like the low fees of the exchange traded funds (ETFs) that made Claymore such a success.

Claymore, founded by Seif in 2005, was one of the fastest-growing investment firms in Canadian history and Canada's No. 2 ETF provider with assets of $8 billion before it was bought by BlackRock Inc last year.

Now Seif is back on the scene with Purpose Investments. Its first vehicle, NexC Partners Corp, is a closed-end fund focused on dividend-paying North American equities. NexC aims to provide long-term capital appreciation and quarterly cash distributions at a projected rate of 5 percent a year.

"My goal is very simple. I want to deliver really high-quality investment products but at a lower fee than others would normally offer them at," Seif said in an interview.   Continued...