UBS Acquires Canada's RT Capital

June 20, 2001 ( - UBS Asset Management (UBS-AM) will acquire RT Capital Management, Royal Bank of Canada's (RBC) asset management business, in a $230 million deal.

RBC announced in March that it was seeking an alternative for RT Capital, which manages more than $20 billion in assets, prompted by recent increases in foreign content limits for Canadian pensions.

The increase in foreign content limits, from 20% to 30%, for Canadian pension funds, the fourth largest pension market, led Canadian plan sponsors and institutional investors to seek managers who could offer a range of US and global investment alternatives, such as UBS-AM.

After the close of the transaction, expected in September this year, RT Capital will be renamed Brinson Canada, in line with the Brinson Partners and Brinson Advisors brand names used by UBS-AM.