November 24, 2006 09:01 ET

Sceptre Investment Counsel Agrees to Acquire Legg Mason Canada's Private Client Division

TORONTO, ONTARIO--(CCNMatthews - Nov. 24, 2006) - Sceptre Investment Counsel Limited (TSX:SZ) today announced an agreement in principle to purchase the Private Client Division of Legg Mason Canada.

Legg Mason Canada's Private Client Division manages approximately $600 million in assets in four offices across Canada. Upon completion of this purchase Sceptre will have in excess of $1.0 billion in individual, endowment and foundation assets under management.

Pursuant to the terms of the transaction, Sceptre will maintain the existing Legg Mason Canada affiliates as sub-advisors for foreign specialty investments in discretionary pools and segregated account management. Legg Mason Canada's affiliates include Batterymarch Financial Management, Brandywine Global Investment Management, Private Capital Management, Legg Mason Capital Management and Berkshire Asset Management.

"Sceptre has been interested in an acquisition in this area of the managed money business for the last few years and we are pleased to have found this team of quality investment professionals. We look forward to working with them, their clients and the group of affiliated money managers at Legg Mason Canada" stated Richard Knowles, President and Chief Executive Officer.

Subject to receipt of unitholder and regulatory approvals, the all cash acquisition is expected to close on or about December 31, 2006 at which point all Legg Mason Canada Private Client managers and staff will join Sceptre in similar roles. The transaction will be accretive to Sceptre's operating earnings and cash flow in 2007.

About Sceptre Investment Counsel

Sceptre Investment Counsel Limited is a leading independent Canadian investment management firm with assets under management of $7.6 billion. The Company's Pension and Institutional Fund group manages investment portfolios for a wide range of clients, including corporations, governments, hospitals, charitable foundations, endowments, universities and unions. Through its Private Client group, Sceptre provides discretionary funds and segregated account management for high net-worth individuals and offers a family of seven mutual funds and two closed end funds. Sceptre employs approximately 50 people in its office in Toronto. Sceptre's common shares trade on the Toronto Stock Exchange, under the symbol SZ.

Contact Information

  • Sceptre Investment Counsel Limited
    Richard L. Knowles
    President and Chief Executive Officer
    (416) 866-2380