Merrill Lynch Canada's decision to sell its $2.8 billion in Canadian mutual fund assets to competitor Canadian Imperial Bank of Commerce may have been based on research that shows the wealth market in Canada is shrinking.

Acquisitions, product consolidation, a shift to outsourcing--it's all part of the plan for Investec's U.S. investment management unit, said its managing director, Royce Brennan.

New York-based investment advisor Neuberger Berman announced that it will acquire the $800 million in assets managed by Oscar Capital Management LLC. The deal is expected to close by year-end.

If fund companies aren't building private wealth management products, they are buying them. A look at some of the recent acquisitions in the fund industry finds that the companies acquired are, in many cases, wealth management firms. And in doing so, mutual funds appear fearful of losing their luster to hedge funds, managed accounts, wrap programs and other wealth products.

Fund mergers have increased recently, and as long as the current market downturn continues, the numbers of mergers will only go up, according to industry analysts.

Roulston & Co. Investment Management and The Hickory Group, two investment advisors based in Cleveland, will merge, the companies announced last week. Roulston & Company Investment Management is the advisor to the Roulston family of mutual funds.

In a deal valued at more than $247 million, asset manager AMG will acquire a majority stake in Freiss Associates, the growth-oriented investment advisory firm best known for handling the well-known Brandywine fund family, it was announced today.

In back-to-back deals Boston investment management firm Eaton Vance Corp. acquired majority stakes in two asset management firms in an effort to ramp up its separate accounts business and pump new products into the financial advice distribution channel.

The John Nuveen Company announced it will acquire institutional money manager Symphony Asset Management for $210 million in cash plus potential future growth incentives.

While the number of mergers and acquisitions between investment advisors this year has kept up with the fast pace of 2000, the dollar amounts of those deals is down dramatically.

The latest wealth management acquisition by Bank of Montreal will expand its mutual fund reach in Canada to include funds sold through independent advisors not affiliated with the bank.

The nearly $1 billion FleetBoston agreed to pay last week to acquire the asset management units of Liberty Financial, appears to be a good deal, but the real value of the acquisition will depend on how the two companies merge, according to industry observers.

Legg Mason of Baltimore announced last week that it will acquire Private Capital Management, a high-net-worth manager in Naples, Fla. in a cash and incentive deal that could reach $1.38 billion. This is Legg Mason's third acquisition of a wealth adviser within the past six months.

At 24, Carmen Caldwell has already invested some $700 in mutual funds. And unlike many investors her age, she took the initiative to set up the account herself.

State Street Corporation of Boston will acquire the portfolio accounting service business of DST System of Kansas City, Mo., the companies announced last week.

Bank of Montreal of Toronto, announced last week that it has acquired Guardian Group of Funds Ltd. from Guardian Capital Group Limited, also of Toronto. The deal is valued at U.S.$117 million in treasury shares, according to a Bank of Montreal spokesperson.

Liberty Financial Companies of Boston appears to be struggling to find a buyer for its asset management units and may have to drop its asking price in order to secure a buyer, according to industry analysts.

AMVESCAP of London announced last week that it will acquire Pell Rudman & Co. of Boston from Old Mutual PLC, also of London, in a multi-year purchase arrangement which includes a $172 million cash payment and potential asset retention payments of up to $28 million over the next two years.

Mellon Financial Corp. of Pittsburgh has announced that it will acquire Standish, Ayer & Wood, a predominantly fixed-income investment manager based in Boston in an all cash deal. Terms of the deal were not disclosed.

The merger announced earlier this month between First Union Corporation of Charlotte, N.C. and Wachovia Corporation of Winston-Salem, N.C. brings together two families of mutual funds that will have $96 billion in combined assets, according to the companies.