Alan Radlo rumoured to join CI in January

For months, rumours have been swirling as to which fund company would snag Alan Radlo, the former star manager at Fidelity Investments Canada. Finally, that speculation may be laid to rest.

It’s been reported that Radlo will move to the CI Financial Income Fund in January, once his one-year non-compete clause with Boston-based Fidelity expires.

“This is a big plus for CI,” says James Gauthier, a mutual fund analyst with Dundee. “They’re going to take in assets from the get-go.”

At Fidelity Canada, Radlo oversaw about 25% of the company’s $37.5 billion in assets, so adding the sought-after manager could be a boon to business. He’s developed a close relationship with advisors over the years, many of whom may move client assets to Radlo’s new fund.

“Radlo has been around for a while, so certainly anyone who has been a fan of his in the past would probably see a compelling case for them to move money,” says Gauthier.

Rudy Luukko, a mutual fund analyst at Morningstar Canada, adds that Radlo’s familiarity with the Canadian equity markets and Canadian companies could be “of great value to a company wanting to start a fresh Canadian stock mandate.”

Many in the industry would not be shocked by Radlo’s decision to join CI. The manager held CI stock in his Fidelity Canadian Growth Company Fund and reportedly came to know CI’s CEO, Bill Holland, very well.

Gauthier says the move would be a good fit because Holland would give Radlo his independence, something he fought for at Fidelity.

“One issue Radlo had with Fidelity is he very much felt handcuffed at times,” Gauthier explains. “With CI, the perception is that he would get the flexibility he wanted to have at Fidelity.”

The partnership also makes sense because Radlo “is a big-company person,” says Luukko, and CI is the largest non-bank company that sells to independent advisors. “Radlo’s profile was built in the broker-dealer community, and this is another large independent firm.”

While it looks as though CI has won the battle over Radlo, there were other noteworthy offers in the works. It was reported that a fund arm of a Canadian bank and a New York hedge fund were also trying to snag the respected manager.

CI already has a team of four highly regarded Canadian equity managers, so hiring Radlo wasn’t just about bringing in the big bucks. The company wanted to make sure that its competition didn’t get a hold of him first. “CI wanted to get into the Radlo race not only to ensure that they had another good asset on their bench, but they wanted to make sure that no one else picked him up,” says Gauthier.

While no press release has been issued, and neither Holland nor the company’s spokesperson would comment for this story, it’s reported that Radlo could become an in-house manager.

But whatever he does at CI, it’s likely everyone will be after his golden touch. “He has a very strong following with advisors, and a reputation for being a very passionate guy with a great personality,” says Gauthier. “He’s going to take in money.”

Filed by Bryan Borzykowski, Advisor.ca, bryan.borzykowski@advisor.rogers.com