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Som Seif, president of Claymore Investments, says securities laws prohibit ETFs and mutual funds from charging twice.
Som Seif, president of Claymore Investments, says securities laws prohibit ETFs and mutual funds from charging twice.

Streetwise

Claymore sale could fetch more than $300-million Add to ...

A sale of the Claymore exchange traded funds business could fetch its owner more than $300-million based on the recent sale of a rival business.

According to Bloomberg News, Claymore owner Guggenheim Partners LLC has hired bankers to seek a buyer for the business, which has $6.8-billion (U.S.) in ETF assets under management.

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The price isn't clear, with Bloomberg saying only that the sale could tally hundreds of millions.

The recent sale of a stake in Horizons ETFs provides a benchmark for just how many hundreds of millions.

The seller in that case offloaded 58 per cent of Horizons, a smaller business with $3.3-billion (Canadian) in assets in its 75 funds, for $90-million. The buyer was Korea's Mirae Asset Global Investments Co.

That values the Claymore business at about $326-million. Claymore might fetch a premium because it has a bigger business, ranking No. 2 in Canada behind BlackRock's iShares business.

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