TORONTO - The Canadian arm of Scudder Kemper Investments of New York has abandoned plans to operate as a stand-alone operation, choosing instead to forge an alliance of an undisclosed nature with Investors Group of Winnipeg, Manitoba, the country's largest fund sponsor. The deal comes after Scudder fell short of making a major marketing breakthrough as a direct seller, despite several years of generally strong investment performance and heavy spending on advertising and marketing.

Scudder's new strategic alliance is also a recognition that fund sales in Canada are far more driven by intermediaries than they are south of the border.

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