(September 5 – 09:20 ET) – Sceptre Investment Counsel Ltd.and Putnam Investments, one of the largest investment management companies in the United States, say they have formed a strategic alliance to establish co-branded investment products for Canadian institutional clients.

The deal makes Sceptre the exclusive Canadian marketing agent for all Putnam Global, International and U.S. investment products for new institutional clients. These currently include five products targeted at institutional investors: U.S. Equity, International Equity, Global Core Equity, MidCap U.S. Equity and Emerging Markets Equity. The products will be marketed under the newly created Sceptre/Putnam banner.

In addition, Putnam has agreed to purchase a 5% minority position in Sceptre from current Sceptre-affiliated shareholders for approximately $13 million. The purchase is subject to certain conditions and regulatory approval, and is scheduled to be completed later this month. The deal gives Putnam the right to appoint a representative to Sceptre’s board of directors. Putnam will also have the potential to increase its ownership in Sceptre over time.

“This alliance will enhance Sceptre’s strong investment management capabilities and provide Sceptre’s Canadian clients with a much wider variety of Global, International and U.S. investment products,” said William Malouin, president and CEO of Sceptre. “In Putnam, we have found a partner that shares our commitment to the highest standards of quality, integrity and professionalism. By combining our resources, we will provide an independent, Canadian-based solution to address the global investment needs of our clients.”

“We are extremely pleased to team up with a high quality firm like Sceptre,” said John Brown, managing director and chief of institutional management at Putnam. “This agreement, combined with the increased limits for foreign investment by Canadian pension plans, provide us with the platform to rapidly expand our business in the Canadian market.”

As part of this transaction, Sceptre will appoint Putnam as sub-advisor for its foreign equity pooled funds, effective October 1. Putnam will also maintain all relationships with its existing Canadian institutional clients.

The companies say that additional areas of co-operation between them are under discussion,and will be communicated to clients and shareholders over the next 12 months.
-IE Staff