CIBC is taking a 41% stake in American Century, paying $848 million in cash for the shares that JP Morgan currently holds. JP Morgan paid $900 million for a 45% stake in American Century in 1998 and pared back its holdings over the years.

The deal limits CIBC’s share of the voting stock in the company to 10.1%. CIBC will have two representatives on American Century’s 10-person board.

James E. Stowers, Jr., founder of American Century, used the funding from JP Morgan to create the Stowers Medical Research Institute to research cancer and other gene-based diseases.

The sale is expected to close by the end of October.

“This investment will build on our strong franchise in Canada and provide CIBC an additional platform for growth in asset management internationally,” said CIBC President and CEO Gerry McCaughey. “It is aligned with our risk appetite and provides attractive fee-based income, geographic diversification and revenue synergies within our asset management business. Demographic trends in the U.S. are positive, and savings rates are on the rise. As Boomers continue to advance towards retirement age, the increased demand for personal retirement solutions make this opportunity attractive.”

Jonathan Thomas, president and CEO of American Century, said the partnership will permit his company to reach non-U.S. clients.