Sceptre Investment Counsel has agreed in principle to buy the Canadian private client business of US asset managers Legg Mason. This divi...

Sceptre Investment Counsel has agreed in principle to buy the Canadian private client business of US asset managers Legg Mason.

This 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.

According 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.

Richard Knowles, president and chief executive officer, said: “Sceptre has been interested in an acquisition in this area of the managed money business for the last few years.”

Subject to unitholder and regulatory approvals, the all-cash acquisition is expected to close on or about 31 December 2006 at which point all Legg Mason Canada private client managers and staff will join Sceptre in similar roles.

Sceptre Investment Counsel is a Canadian investment management firm with assets under management of $7.6 billion. 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.